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The Honolulu Advertiser

Updated at 1:26 p.m., Monday, November 13, 2006

NCL sees 'challenging road' for local cruise operations

Advertiser Staff

NCL Corp. said it expects to see continued "downward pricing pressure" for its Hawai'i interisland voyages through the first three months of next year, in part because the addition of a third cruise liner in the state.

"Our rapid expansion in interisland Hawai'i cruises and increased fuel costs continue to impact our results," said NCL President and Chief Executive Officer Colin Veitch, in a press statement announcing the company's results for the three months ended Sept. 30.

"In the near term, we still have a challenging road ahead of us in Hawai'i, but with the stabilization of our NCL America fleet, we expect to achieve operating improvements in 2007."

The third quarter was the first full quarter with three vessels in Hawaiian waters. The Miami-based company also faced higher costs flying guests to Hawai'i.

NCL reported third-quarter net income rose about 19 percent to $49 million, compared to a year earlier. Revenue rose by about 20 percent to $592.3 million.