Norwegian Cruise Line Holdings expects a 8% earnings hit from the sudden ban on cruise calls to Cuba.
Its adjusted earnings for FY 2019 could see a decline of 45 cents per share due to the U.S. Treasury Department’s abrupt decision to ban cruise ships docking in Cuba.
It said the lack of advance notice to make the changes and the need to lessen the impact for customers with discounts, refunds and cruise credits will hit the bottom line hard.
This also includes the cost of protection of travel agent commissions.
Norwegian Cruise Line has offered passengers booked on future sailings full refunds if they wish to cancel their booking or a 50% refund if they choose to sail on the revised itineraries.
"Our three brands are working diligently to accommodate the needs of our guests and travel partners as we quickly modify itineraries to meet the new Cuba travel regulations," said CEO Frank Del Rio.
"We share in the disappointment that comes with these changes especially on such short notice. Our brands have put in place generous compensation programs that offer guests and travel partners a compelling, value-packed alternative."
