Norwegian Cruise Line Holdings Ltd (NCLH) has reported a sharp reduction in final quarter and full year 2022 loss compared to the previous year as the company gradually ramped up its operations, it said in a statement.

The third largest listed cruise shipping group reported net loss of $480.5 million in the final quarter f 2022 compared to a loss of $1,572.7 million in the same period a year earlier. Operating loss narrowed to $280.9 million from $686.8 million, while revenues rose to $1,519.1 million from $487.4 million.

For the full year, NCLH reported a net loss of 42,269.9 million compared to $4,506.6 million in 2021. Operating loss amounted to $1,551.7 million compared to $2,552.3 million in 2021 as revenues increased to $4,843.7 million from $647.8 million.

Strong ticket pricing and onboard revenue generation resulted in better-than-expected total revenue per Passenger Cruise Day which was up approximately 23% as-reported and approximately 24% in Constant Currency in the fourth quarter of 2022 versus 2019.

Net cash provided by operating activities was approximately $237 million and the company reached another financial inflection point by generating positive Adjusted Free Cash Flow of approximately $71 million for the fourth quarter of 2022, NCLH said in a statement.

Capacity to grow by 50% over 2019

“2022 was an eventful year, as we successfully completed our nearly yearlong Great Cruise Comeback, welcomed our newest ship Norwegian Prima to our world class fleet and achieved several key milestones on our post-pandemic financial recovery,” said Frank Del Rio, president and chief executive officer of NCLH in the statement.

“We are now squarely focused on the future and are taking deliberate and strategic actions to best position the Company for its next chapter, which includes an industry-leading growth profile representing approximately 50% capacity growth over 2019.”

NCLH continued its phased ramp-up in the fourth quarter achieving occupancy ratio of approximately 87%, consistent with previously outlined expectations and with the gap versus 2019 levels continuing to narrow sequentially. “Occupancy is expected to average approximately 100% for the first quarter of 2023 and reach historical occupancy levels for the second quarter of 2023. Full year 2023 Occupancy is expected to reach approximately 103.5%, partially impacted by a lower first quarter due to the phased voyage ramp up,” NCLH said.

With the phased Occupancy ramp up now nearly complete, the company is undertaking a broad and ongoing margin enhancement initiative, focused on both maximizing revenue opportunities and right sizing its cost base, in order to strengthen the foundation for sustained, profitable growth, it said.