Norwegian Cruise Line Holdings (NCLH), the world’s third largest listed cruise shipping company, has significantly reduced its losses in the first quarter from the same period a year earlier as bookings staged a strong recovery after a soft period at the start of the year, the company said in a statement.

“The quarter began with net bookings, particularly for close-in voyages, negatively impacted by the Omicron surge, which began to improve in mid-January. This momentum was temporarily disrupted as the Company experienced elevated cancellations, primarily for itineraries in the Baltic region, in the immediate weeks following the start of the Russia-Ukraine conflict,” NCLH said.

However, this impact was short-lived and net booking volumes have since shown sequential improvement, not only rebounding back to pre-Omicron levels but also now approaching the booking pace needed to consistently sail at historical load factor levels.

Total cruise operating expense increased 266.1% in 2022 compared to 2021, primarily due to the resumption of cruise voyages. The increase reflects higher payroll, fuel, and direct variable costs of fully operating ships. “Cost for certain items such as food, fuel and logistics also increased due to inflation. Additionally, in 2022, there was an increase in repair and maintenance costs, including planned dry-docks,” the company stated.

Fuel price per metric ton, net of hedges, increased to $724 from $590 in 2021. The company reported fuel expense of $135.5 million in the period. Interest expense, net was $327.7 million in 2022 compared to $824.4 million in 2021. “The decrease in interest expense reflects lower losses from extinguishment of debt and debt modification costs, which were $188 million in 2022 compared to $674 million in 2021. The decrease in interest expense also reflects lower interest expense in connection with the recent refinancing, partially offset by higher debt balances and higher LIBOR rates,” NCLH noted.