Norwegian Cruise cuts annual profit forecast as Middle East conflict pressures demand

July 30 (Reuters) - Norwegian Cruise Line Holdings NCLH.N trimmed its annual profit forecast on Thursday and said demand remained under pressure amid softer booking trends and higher fuel costs tied to ongoing Middle East tensions.

Shares of the cruise operator were down 7% in premarket trading.

Peer Royal Caribbean RCL.N earlier this week also flagged a modest hit to bookings from travel disruptions caused by the U.S.-Iran conflict, despite raising its annual profit forecast.

Cruise operators are seeing a slowdown in new bookings as geopolitical uncertainties and higher airfare to reach starting destinations discourage travelers from reserving high-end vacations and private-island getaways.

The company said it "remains below its optimal booked position for the next 12 months," citing execution-specific challenges and war-led disruptions.

Norwegian is also in the midst of a cost-cutting effort as part of CEO John Chidsey's turnaround plan, following pressure from activist investor Elliott Investment Management, the cruise operator's largest shareholder. The campaign led to the addition of five new directors to its board in March.

"While we are confident in the strength of our brands and the long-term benefits of the actions underway, we are still in the early stages of our turnaround," Chidsey said.

The company said it expects fiscal 2026 adjusted earnings per share to be around $1.50, compared with its prior forecast of $1.45 to $1.79 per share. Analysts on average were expecting $1.67 per share, according to data compiled by LSEG.

The company reported a 39.4% rise in quarterly fuel expenses to $219.4 million from a year earlier.

Revenue increased 4.9% to $2.64 billion for the quarter ended June 30, in line with analysts' estimates. Adjusted profit came in at 48 cents per share, compared with analysts' expectations of 39 cents.