Norwegian Cruise Line Holdings Ltd (NCLH), the third largest cruise shipping group in the world; said continued to expect to reach a critical inflection point in the first quarter 2022 with operating cash flow turning positive.

“In addition, based on the current trajectory, the Company expects to be profitable for the second half of 2022,” it said in a statement.

NCLH continues to execute on the phased relaunch plans for its 28-ship fleet. The Company had approximately 40% of its capacity operating by the end of the third quarter 2021 with the fleet in service being cash flow positive in the quarter.

Occupancy in the third quarter 2021 was 57.4%, reflecting the Company’s self-imposed occupancy limits. Looking ahead, approximately 75% of capacity is expected to be operating by year-end 2021 with the full fleet back in operation by April 1, 2022.

Delta variant impact recedes

A negative impact on bookings of the Delta variant of the covid-19 virus that affected the final quarter and early 2022, NCLH’s overall cumulative booked position for full year 2022 is in line with 2019’s record levels at higher pricing even when including the dilutive impact of future cruise credits (“FCCs”).

“The overall cumulative booked position for the second half of 2022, when the full fleet is expected to be back in operation and at normalized occupancy levels, is meaningfully higher than 2019 and at higher prices,” the company said.

Advance ticket sales were $1.7 billion, including the long-term portion, which includes approximately $750 million of FCCs as of September 30, 2021. Advance ticket sales increased $0.3 billion on a net basis from the end of the second quarter even with approximately $100 million of revenue recognized in the quarter.