Norwegian Cruise Line scraps Israel stops and slashes its 2021 outlook.

• Norwegian Cruise Line is canceling Israel stops into 2024.
• The Maui, Hawaii wildfires led the cruise company to lower its profit projections.

On Wednesday, it was announced that the company would cancel its stops in Israel from this year until 2024 due to the ongoing escalation of the conflict between Israel and Hamas.

Norwegian has revised its full-year earnings forecast to 73 cents per share, down from its previous projection of 80 cents, due to the wildfires in Maui, Hawaii.

Shares of the company fell more than 3% on Wednesday.

The Israel conflict has affected not only Israel-specific cruises but also broader cruises to the Middle East region, according to the company's earnings call. Additionally, a rival cruise line announced that canceling sailings to Israel would negatively impact their earnings for the year by 3 cents per share.

The company executives expressed optimism that the Israel conflict will be resolved quickly, allowing them to return to the Middle East soon.

Our industry's strength lies in our ability to adapt our assets, as demonstrated by our response to the escalating tensions in the Middle East. The safety and well-being of our guests and crew members remain our top priority.

Norwegian had to modify some August itineraries due to the wildfires in Maui, which resulted in a slowdown in bookings. However, the company has since experienced almost normal levels of bookings in the fourth quarter.

The company revised its 2023 occupancy forecast from 103.5% to 102.6%, citing the impact of disruptions on fourth-quarter performance.