Norwegian Cruise Line Holdings on Thursday forecast an impact of 75 cents per share to full-year adjusted earnings, citing cancellations and modification of 40 voyages in Asia and refunds to customers due to the coronavirus outbreak in China.
The health emergency that originated in China’s Hubei province and has claimed more than 2,000 lives, has taken a toll on cruise operators as travel restriction and fear of the virus spreading have led to cancellations of trips to the Far East.
The Miami, Florida-based company’s announcement comes after both Royal Caribbean Cruises and Carnival said cruise cancellations would affect their 2020 earnings.
Norwegian Cruise Chief Executive Officer Frank Del Rio said strong demand for cruises continued through late January until the coronavirus outbreak began having an adverse impact on its business.
The company said its financial performance could be materially impacted if travel restrictions and virus concerns continue for an extended period of time.
However, the company forecast 2020 adjusted earnings between $5.40 and $5.60 per share, excluding known and unknown impact from the outbreak.
Analysts were expecting earnings of $5.51, according to IBES data from Refinitiv.
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