Norwegian, Carnival Stocks Sink to 52-Week Lows

Norwegian, Carnival Stocks Sink to 52-Week Lows

Norwegian Bliss

Two major cruise operators saw their stocks hit 52-week lows on Thursday, as Norwegian Cruise Line Holdings dipped as low as $14.48 and Carnival Corporation sank to $22.28.

Other cruise stocks were also down on Thursday, including Royal Caribbean, Lindblad and Viking, although those three were off their year-long lows.

Driving the dips were said to be concerns over fuel prices due to the ongoing Middle East situation, and a potential capacity and pricing situation in the Caribbean in the first quarter.

U.S. crude oil had topped $100 a barrel on Wednesday as strikes continue in the Middle East.

Meanwhile, multiple Wall Street analysts have pointed to the cruise industry’s 2027 first quarter Caribbean capacity and ticket pricing as a potential concern.

One note sent to investors this week had called out Norwegian Cruise Line Holdings specifically as a contributor to pricing pressure.

The company’s decision to adjust its pricing model and offer the best prices well in advance of a sailing date has been said to have an effect on pricing across the marketplace.

 

Jefferies Cuts Norwegian Price Target

Jefferies Cuts Norwegian Price Target

Jefferies cut its price target on Norwegian Cruise Line Holdings to $17 from $18 following the company’s second quarter results.

Analyst David Katz reiterated a Hold rating, with the shares near $21 implying roughly 19% downside to his new target.

Katz described Norwegian’s new revenue management strategy as “a LT (long term) positive but a ST (short term) headwind,” with second half 2026 and 2027 yields likely under pressure before improving in 2028.

He detailed the company’s shift to a base-loading strategy, lowering early-curve pricing to build occupancy and drive stronger close-in pricing over time, alongside heavier marketing and top-of-funnel demand generation.

BNP Paribas’ Xian Siew said that the yield reset was driven largely by occupancy, which the company now expects at about 102.3%, roughly 300 basis points lower than before, partly offset by stronger per diems.

That mix, Siew said, reflected management preferring to have some empty berths rather than promote even further.”

Siew, who characterized the risk/reward as wide and balanced, noted that many bulls had already written off 2026 and shifted their focus to 2027.

A Look at the Future of Oceania Cruises’ R-Class Ships

A Look at the Future of Oceania Cruises’ R-Class Ships

Oceania Cruises is set to undergo significant changes over the next few years with the debut of newbuilds and the retirement of its older vessels.

Having been fully repositioned into the luxury market, the Norwegian Cruise Line Holdings’ (NCLH) brand is moving on from its older R-class ships, which are being sold off, repurposed or chartered.

Cruise Industry News looks at the company’s plans for the four ships, which originally debuted between 1998 and 2001.

Sirena
Capacity: 684
Tonnage: 30,200
Year Built: 2000
Fate: Sold to undisclosed buyer
Farewell Cruise: March 24, 2028

Norwegian Cruise Line Holdings announced the sale of the Sirena in late July. While a buyer was not named, the ship is expected to be delivered to its new owners after its spring 2028 deployment.

Originally launched as the R4 in 2000, the 684-passenger ship was acquired by Oceania in 2016, after spending over a decade sailing for Princess Cruises.

Nautica
Capacity: 684
Tonnage: 30,200
Year Built: 2000
Fate: To become Oceania Aurelia
Farewell Cruise: October 15, 2027

The Nautica will remain in service for Oceania Cruises after undergoing a significant refurbishment in late 2027.

According to the company, the 2000-built ship will be reimagined as the “ultimate world explorer,” embarking on longer cruises and the brand’s 180-day Around the World Voyages. Renamed Oceania Aurelia, the vessel will offer larger suites and capacity will be trimmed from 684 to under 400.

Regatta
Capacity: 684
Tonnage: 30,200
Year Built: 1998
Fate: Chartered to My Cruises
Farewell Cruise: August 17, 2026

The Regatta will leave Oceania Cruises’ fleet this year having been chartered to My Cruises’ Explorations by Norwegian brand.

The Australian tour operator will operate world cruises onboard the 30,200-ton vessel, currently holding a two-year charter agreement with Norwegian Cruise Line Holdings.

“At the conclusion of the initial term, the charter may be extended for multiple years or, alternatively, the vessel may be sold to a third-party cruise operator,” NCLH stated in its 2026 second quarter earnings presentation.

Insignia
Capacity: 684
Tonnage: 30,200
Year Built: 1999
Fate: To remain in fleet for the time being
Farewell Cruise: TBD

The Insignia is staying in the company’s fleet for the time being. The 30,200-ton ship was previously slated to be withdrawn in 2027 to become a residential cruise ship for Crescent Seas but the plan later fell through.

While no new long-term plans have been announced, Oceania’s published deployment includes departures onboard the 30,200-ton ship through November 2027.

Norwegian Cruise Line Holdings Reports Second Quarter 2026 Financial Results

Norwegian Cruise Line Holdings Reports Second Quarter 2026 Financial Results

Norwegian Bliss photo credit Dave Jones / Spacejunkie - https://flic.kr/ps/GkiQt

Norwegian Cruise Line Holdings today reported financial results for the second quarter ended June 30, 2026 and provided guidance for the third quarter and full year 2026.

Highlights

• Second quarter total revenue grew 4.9% to $2.6 billion. GAAP net income was $223 million with EPS of $0.48.
• Delivered better-than-expected second quarter profitability, with Adjusted EBITDA1 of $666 million, Adjusted Net Income of $222 million and Adjusted EPS of $0.48, each exceeding guidance.
• Company now expects full year 2026 Adjusted EPS to be approximately $1.50.
• Advanced the Company’s global business sourcing strategy through the consolidation of technology vendors as well as other salary and benefit savings, generating an additional ~$100 million of expected annualized run-rate savings, primarily from capital expenditures and SG&A.
• Announced the grand opening of Great Tides Waterpark on September 4, 2026, at the Company’s private island, Great Stirrup Cay. Spanning nearly six acres, Great Tides Waterpark will deliver a bold, family-friendly adventure across immersive attractions for all ages.
• Entered into a memorandum of agreement in July 2026 for the sale of Oceania Sirena. Oceania Cruises expects to continue operating Oceania Sirena through spring 2028 pursuant to a charter agreement. The transactions are expected to close during the third quarter of 2026.
• Prior to quarter-end, the Company elected to settle the 1.125% Exchangeable Senior Notes due 2027, and the 2.50% Exchangeable Senior Notes due 2027, in cash. The elections are expected to reduce the diluted weighted-average shares outstanding in full year 2026 by 4 million shares, relative to guidance previously issued on May 4, 2026.

“Norwegian Cruise Line Holdings delivered a solid second quarter with profitability ahead of guidance. At the same time, we continued to advance our strategic priorities to strengthen the business for the long term,” said John W. Chidsey, Chairperson and Chief Executive Officer of Norwegian Cruise Line Holdings.

“We are executing with urgency on our priorities including sharpening our brand positioning and marketing execution, strengthening our revenue management and pricing capabilities, driving meaningful cost efficiencies, including an additional $100 million of savings, and ensuring we have the right team in place to rebuild commercial momentum over time. 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. Our leadership team is united and focused on delivering sustainable growth and long-term value creation.”

Second Quarter 2026 Highlights

• Generated total revenue of $2.6 billion, a 4.9% increase compared to the second quarter of 2025, driven by increased Capacity Days. GAAP net income was $223 million compared to $30 million in the prior year, with EPS of $0.48.
• Gross margin per Capacity Day decreased 11.6% versus 2025 on an as reported basis and decreased 12.3% on a Constant Currency basis. Net Yield decreased approximately 2.1% on an as reported basis and 2.6% on a Constant Currency basis, better than guidance of a decline of 3.6%.
• Gross Cruise Costs per Capacity Day were approximately $304, compared to $306 in the prior year. Adjusted Net Cruise Cost excluding Fuel per Capacity Day was approximately $164 on an as reported basis and $163 on a Constant Currency basis. Compared to 2025, this metric was essentially flat on an as reported basis and decreased 0.5% on a Constant Currency basis, 150 basis points better than guidance.
• Adjusted EBITDA declined 4.1% to $666 million, compared to $694 million in 2025, above guidance of $632 million. Adjusted EPS decreased 6.6% to $0.48, above guidance of $0.38.

2026 Full Year Outlook

The Company said it continues to execute on the cost front, identifying $100 million of annualized savings, in addition to the $125 million of annualized savings announced last quarter. The Company has also taken actions to strengthen its execution, including the addition of key leadership within marketing, revenue management and other key areas at Norwegian Cruise Line. The benefits of these changes are expected to be realized over time and will have a limited impact on 2026 financial results as the Company navigates through its execution challenges, which are impacting its demand generation and revenue outlook. As a result, the Company is updating its full year 2026 guidance. A summary of the updated full year guidance is provided below:

• 2026 full year Net Yield on a Constant Currency basis is expected to be down approximately 5% versus 2025.
• 2026 Adjusted Net Cruise Cost excluding Fuel per Capacity Day is expected to be down approximately 0.25% on a Constant Currency basis versus 2025, reflecting better-than-previously-guided performance driven by ongoing savings.
• 2026 full year Adjusted EBITDA is expected to be approximately $2.5 billion.
• Adjusted Operational EBITDA Margin for the full year 2026 is expected to be 33.2%.
• Full year Adjusted Net Income is expected to be approximately $700 million. Adjusted EPS is expected to be approximately $1.50.

Q3 2026 Outlook

• Q3 2026 Net Yield on a Constant Currency basis is expected to decline 8.9% versus 2025.
• Q3 2026 Adjusted Net Cruise Cost excluding Fuel per Capacity Day is expected to decline 0.9% on a Constant Currency basis versus 2025.
• Q3 2026 Adjusted EBITDA is expected to be $874 million and Adjusted Operational EBITDA Margin for the quarter is expected to be 41.2%.

 

Booking Environment Update

The Company remains below its optimal booked position for the next 12 months, as it continues to experience pressure from softer demand at its Norwegian Cruise Line brand related to Company-specific execution challenges, as well as the ongoing conflict in the Middle East. As we look ahead, the full amenities at the Company’s private island, Great Stirrup Cay, will be open to the public beginning September 4, including the pier and the new Great Tides Waterpark, the Great Life Lagoon, and the nearby Splash Harbor, which we expect will improve demand to Caribbean itineraries over time.

Liquidity and Financial Position

The Company is committed to optimizing its balance sheet and reducing Net Leverage. As of June 30, 2026, the Company had total debt of $15.0 billion and Net Debt of $14.8 billion. Net Leverage ended the quarter at 5.3x.

As of June 30, 2026, liquidity was $1.5 billion, including approximately $218 million of cash and cash equivalents and $1.3 billion of availability under our Revolving Loan Facility.

“While the demand environment remains pressured at our Norwegian Cruise Line brand, we continue to execute on disciplined cost and sourcing initiatives, and have identified an additional $100 million of expected annualized run-rate savings primarily related to technology vendors,” said Mark A. Kempa, Executive Vice President and Chief Financial Officer of Norwegian Cruise Line Holdings Ltd. “We remain disciplined in managing our cost structure and over the past three years we have identified over $500 million in savings. These actions will help support future margin expansion and strengthen our financial flexibility as we continue to position the Company for long-term profitable growth.”

Outlook and Guidance

In addition to announcing the results for the second quarter of 2026, the Company also provided guidance for the third quarter and full year 2026, along with accompanying sensitivities, subject to changes in the broad macroeconomic environment. The Company does not provide certain estimated future results on a GAAP basis because the Company is unable to predict, with reasonable certainty, the future movement of foreign exchange rates or the future impact of certain gains and charges. These items are uncertain and will depend on several factors, including industry conditions, and could be material to the Company’s results computed in accordance with GAAP. The Company has not provided reconciliations between the Company’s 2026 guidance and the most directly comparable GAAP measures because it would be too difficult to prepare a reliable U.S. GAAP quantitative reconciliation without unreasonable effort.

Norwegian Targets Marketing Overhaul with New Leadership, Leaner Spend

Norwegian Targets Marketing Overhaul with New Leadership, Leaner Spend

Norwegian Cruise Line Holdings is moving to rebuild its marketing function at the Norwegian Cruise Line brand, bringing in new leadership and cutting overall spending, said Chairperson and CEO John Chidsey.

Speaking on the company’s first quarter 2026 earnings call, Chidsey acknowledged that marketing underperformance has been a significant part of the brand’s occupancy shortfall, and that correcting course will require both new personnel and a more disciplined approach to how dollars are allocated.

“We are looking to bring in new leadership in marketing at NCL and better align that function with revenue management, deployment, and sales,” Chidsey said. “This work is critical and will strengthen the business over time, but it may result in some near-term variability in top-line performance as we work through these initiatives.”

NCLH recently completed a search for a new chief people officer, and Chidsey said the company is continuing to build out its revenue management team, noting that new hires across both functions have not yet fully gelled, contributing to the wide guidance range the company issued for the full year.

On the spending side, NCLH expects to reduce marketing outlays as part of a broader spending cutback.

Chidsey said the company had lost its way on marketing efficiency, saying that spend had grown disproportionate to results over the past several years.

“Our spend increased dramatically, and we’re not nearly as efficient as our competitors,” Chidsey said.

CFO Mark Kempa offered a stark data point on the inefficiency, noting that NCLH had been spending approximately twice as much per berth as competitors.

“It’s about putting the dollars to work in the right places versus volume,” Kempa said.

New NCLH CEO: $1.7 Million Salary, Potentially $48+ Million in Stock

New NCLH CEO: $1.7 Million Salary, Potentially $48+ Million in Stock

Norwegian Cruise Line Holdings announced that it has entered into an employment agreement and restricted share unit award agreement with John W. Chidsey, its new president and CEO.

“His compensation structure is designed to immediately align his incentives with long-term shareholder value creation, with the majority of his long-term compensation delivered in performance-based equity,” the company said in a press release issued on Friday morning.

Under the employment agreement, Chidsey is entitled to an annual base salary of $1,715,000.

Beginning with the company’s 2027 fiscal year, he will participate in the annual bonus plan with a target annual bonus opportunity equal to 175% of his base salary.

For fiscal 2026, his annual bonus is fixed at $2.9 million, which is below his target annual bonus amount, with no opportunity to earn a higher payout regardless of performance results achieved.

The company said in an effort to encourage Chidsey to accept the job, he was granted a one-time target award of 2,139,892 restricted share units with an intended value of approximately $48 million.

The award was structured as a “front-loaded” grant covering four years of annual equity incentives and designed to provide him with a meaningful at-risk equity interest in the company that may be earned over the initial four-year term of his employment, the company said, in a press release.

When determining the value of Chidsey’s four-year “front-loaded” grant, the Compensation Committee reviewed annual equity grant benchmarks among the company’s peers to help establish a grant value intended to appropriately incentivize sustained shareholder value creation while maintaining a competitive compensation level, NCLH said in a press release.

Based on these considerations, the Compensation Committee determined that the annualized intended grant value of approximately $12 million was market-aligned and within the competitive range for similarly situated peers based on size and industry profile, appropriately encouraging Chidsey’s contributions over the next four-year period.

Consistent with the front-loaded structure, the Compensation Committee does not intend to grant Chidsey additional equity awards until 2030. Unlike other similarly situated executives, Chidsey’s employment agreement does not entitle him to participate in the company’s Amended and Restated 2013 Performance Incentive Plan or any successor equity incentive plan.

Additional information:

The approved award was delivered in a mix of a target number of 1,172,638 performance share units with an intended approximate grant date value of $28.8 million, which represent 60% of the total intended value of restricted share units and 967,254 restricted share units with an intended grant date value of $19.2 million, which represent 40% of the total intended value of restricted share units (the “RSUs”).

The RSUs will vest in four substantially equal annual installments on each of the first four annual anniversaries of March 1, 2026. The PSUs will be eligible to “cliff vest” at the end of a four-year performance period, but only if applicable absolute total shareholder return compounded annual growth rate (“TSR CAGR”) targets are achieved. If our TSR CAGR achieved for the performance period is: (i) less than 5%, none of the PSUs will vest, (ii) 5%, 50% of the target number of PSUs will vest, (iii) 10%, 100% of the target number of PSUs will vest, or (iv) 20% or more, 200% of the target number of PSUs will vest. For performance that falls between these milestones, the PSU vesting will be determined based on linear interpolation.

Chidsey must generally remain continuously employed through the date the performance targets are achieved in order to vest in any PSUs becoming earned based on performance, although the award agreement does provide for accelerated RSU and PSU vesting for certain qualifying terminations of his employment.

The company said the new employment agreement was approved by the Compensation Committee of the Board, in consultation with its independent compensation consultant, and is based on the same form of employment agreement that applies to other senior executive officers.

Jefferies Raises Viking Price Target, Keeps Hold on Norwegian

Jefferies Raises Viking Price Target, Keeps Hold on Norwegian

Viking Vela, photo credit Spacejunkie2 - https://flic.kr/ps/GkiQt

Jefferies analyst David Katz updated his outlook on two major cruise operators this week following their fourth quarter and year end 2025 earnings, lifting his price target on Viking while maintaining a cautious stance on Norwegian Cruise Line Holdings.

Viking Impresses

In a note sent to investors, Katz raised his price target on Viking $91 from $80, reiterating a buy rating, after the company posted its fourth quarter and full year results.

Occupancy of 95.0%, against Katz’s 92.7% projection, led the outperformance, driven by particularly strong ocean segment results where occupancy improved 330 basis points year-over-year. Net yields rose 11.0% in the quarter, roughly double analyst expectations.

Looking ahead, Viking said fiscal 2026 is now 86% booked, up from more than 70% as of the third quarter.

“The clarity of growth is also critical support for the increasing valuation multiples we apply,” Katz wrote, adding that he expects Viking to “continue to outperform peers within cruise and across our coverage, largely irrespective of valuation levels.”

Katz also noted that Viking’s river operations are effectively fully fuel-hedged through forward purchase agreements, and that its only itineraries near the Iran conflict, a small percentage of 2026 capacity in Egypt, have not prompted guest concerns.

Norwegian: Hold, $20 Target

Katz was less upbeat on Norwegian Cruise Line Holdings reiterating a hold rating and maintaining his $20 price target.

Management said Norwegian is running slightly behind its optimal booking curve for 2026, he said, and plans to prioritize occupancy recovery, a strategy Katz acknowledged as “a necessary strategic move” but one that “likely comes with lower pricing in the near term.”

On the cost side, Katz said SG&A reductions are now the target for savings, with ship costs already reduced meaningfully. He expects those efforts to gain traction in the second half of 2026 and into 2027.

“Given guidance for leverage greater than 5.0x through YE26, we remain conservative on the shares,” he wrote.

 

NCLH CFO Admits Caribbean Expansion Was Premature

NCLH CFO Admits Caribbean Expansion Was Premature

Norwegian Cruise Line Holdings’ Chief Financial Officer Mark Kempa offered commentary on the company’s Caribbean capacity strategy, acknowledging that a 40 percent capacity increase into the region was pushed forward prematurely.

“In hindsight, it is clear that this shift was executed without the necessary enterprise-wide coordination,” Kempa told investors on the company’s fourth quarter and year-end earnings call.

“The capacity increase was premature.”

At the center of that was Great Stirrup Cay, the company’s private Bahamian island, which is undergoing a significant enhancement program.

The capacity shift happened before the opening of Great Tides water park on the island, which expected to open later this summer.

Kempa said the commercial infrastructure needed to absorb the additional capacity simply wasn’t ready.

Revenue management, sales, marketing, itinerary planning, and on-island monetization strategies were not aligned or integrated under a single cohesive operating plan.

“The individual components were moving forward, but they were not integrated under a single cohesive operating plan designed to absorb the capacity at the right yield,” he said.

Kempa said the headwinds are more pronounced than the company anticipated.

Kempa did express confidence in the long-term Caribbean strategy, pointing to strong early guest satisfaction scores at Great Stirrup Cay following the opening of a new pier, expanded pool facilities, and enhanced amenities.

“The early feedback reinforces our confidence that our investments are improving the guest experience and will drive strong returns,” he said.

Avora Residences Acquires Regent’s Seven Seas Navigator

Avora Residences Acquires Regent’s Seven Seas Navigator

Avora Residences has acquired the Seven Seas Navigator from Regent Seven Seas Cruises.

The vessel will debut in January 2028 as Avora Lumina, serving as the flagship of Avora’s residential platform designed specifically for long-term living at sea, the company said in a statement.

“Residential cruising has proven its viability,” said Mikael Petterson, Founder of Avora Residences as well as Villa Vie. “Avora Lumina represents the next evolution — purpose-built for long-duration global living, expedition capability, and a more refined residential experience.”

The transaction builds on the proven residential cruising model and strategically positions Avora between Villa Vie Residences’ contemporary residential cruise offerings and The World, according to a statement from Avora.

The ship was acquired on a nine-year charter deal with a nominal purchase option, according to a press release. It also creates a long-term operational agreement with Norwegian Cruise Line Holdings (NCLH), according to a press release.

NCLH had previously had an arrangement to sell the Navigator to Crescent Seas, in addition to an Oceania ship, with the deal falling through.

As part of this relationship, Avora plans to preserve the operational DNA of Seven Seas Navigator wherever possible, maintaining established systems, standards and key vendor and service relationships that have defined the ship.

“Our philosophy is evolution, not disruption,” said Kathy Villalba, Co-Founder & CEO of Avora Residences. “Navigator has a soul — built through years of disciplined operations, experienced crews, and trusted relationships. We intend to honor that legacy while transforming the ship into a true long-term residential platform.”

Ahead of its 2028 launch, Avora Lumina will undergo a full residential conversion. Planned upgrades include personalization and residential enhancements, reimagined common spaces optimized for long-term living, a dedicated business and global connectivity center designed to support extended voyages.

Residences range from approximately 300 to 1,173 square feet and will feature premium finishes, expansive ocean views, and opportunities for personalization.

“These are not cruise cabins,” Petterson said. “They are designed as floating homes — primary residences that travel with their owners for years at a time.”

The Avora Lumina intends to launch from Lisbon, Portugal, embarking on a three-year continuous global circumnavigation, visiting more than 140 countries and over 400 destinations across seven continents.
The ship will remain in port for up to five days at a time.

“We are building a resident-driven global platform,” said Chris Cox, President of Avora Residences. “After the first circumnavigation, owners will help shape where Lumina sails next. That fundamentally changes the residential cruise model.”

Avora Residences will offer two ownership pathways:

• Life-of-Ship Ownership, with pricing ranging from approximately $545,000 to $4.2 million across 242 private residences
• Five-Year Ownership Program, starting at approximately $219,600, offering long-term residential access with a lower overall commitment.

 

Oceania Orders Two More Ships from Fincantieri

Oceania Orders Two More Ships from Fincantieri

Oceania Cruises has confirmed it will double its newbuild order with Fincantieri as two more 1,450-guest ships will debut for the brand in 2032 and 2035, respectively.

Following today’s delivery of the Oceania Allura, the Oceania Sonata will follow in summer 2027 and is the first of a new class of ships, followed by three more vessels, two of which were confirmed today by Jason Montague, chief luxury officer for Oceania Cruises, which is owned by Norwegian Cruise Line Holdings.

The additional two vessels, previously ordered as options for Oceania Cruises, have now been confirmed.

The Sonata will be followed by the first sister ship, the Oceania Arietta, in 2029.

Norwegian Cruise Line Holdings said the new Oceana ships represent the dawn of a new generation of luxury cruising.

Each Sonata Class vessel will carry approximately 1,390 guests and measure approximately 86,000 gross tons.

“I am delighted to confirm we will be adding two more Sonata Class vessels to our fleet. We are proud to continue our legacy of innovation alongside Fincantieri, our shipbuilding partner for close to 20 years. These four Sonata Class ships will herald the next stage in the evolution of the Oceania Cruises brand of exceptional small-ship luxury experiences,” said Montague.

Oceania Orderbook:

• Oceania Sonata; 2027; 1,450 guests
• Oceania Arietta; 2029; 1,450 guests
• Oceania Unnamed Newbuild; 2032; 1,450 guests
• Oceania Unnamed Newbuild; 2035; 1,450 guests

Royal Caribbean and NCLH Announce Q1 Call Dates

Royal Caribbean and NCLH Announce Q1 Call Dates

Norwegian Bliss photo credit Spacejunkie2 Flickr

Royal Caribbean Group has scheduled a conference call for 10:00 a.m. Eastern Time on Tuesday, April 29, 2025, to discuss the company’s first quarter 2025 financial results.

The call will be simultaneously webcast on the company’s investor relations website, rclinvestor.com.

In addition, Norwegian Cruise Line Holdings Ltd. will report its first quarter 2025 financial results on Wednesday, April 30, 2025, at 6:30 a.m. Eastern Time.

The conference call will be webcast via the Company’s Investor Relations website, https://www.nclhltd.com/investors.

Webcast replays of both calls will be available on the company websites for 30 days following the calls.

NCLH To Remove 5,000+ Berths from Fleet by 2027

NCLH To Remove 5,000+ Berths from Fleet by 2027

Norwegian Cruise Line Holdings will remove over 5,000 berths from service by 2027, with four ships now set to exit the line’s trio of brands.

After previously announcing the departures of Regent’s Seven Seas Navigator and Oceania’s Insignia, NCLH confirmed on Monday that it is also retiring the Norwegian Sky and the Norwegian Sun.

Currently in service for Norwegian Cruise Line, the 2,000-guest sister ships will be handed over to Cordelia Cruises in 2026 and 2027, respectively.

With the Seven Seas Navigator and the Insignia being handed over to Crescent Seas in 2026 and 2027, the NCLH fleet will see a reduction of roughly 5,200 berths over the next two years.

Pursuing an aggressive newbuild strategy, the company will add new vessels to offset this reduction.

All of NCLH’s three brands are welcoming new ships over the next three years, including Oceania, which is taking delivery of new vessels in 2025 and 2027, adding 2,650 berths to its fleet

Regent Seven Seas also welcomes a new vessel, the Seven Seas Prestige. The 850-guest ship is scheduled to enter service in 2026.

Norwegian Cruise Line is set to take delivery of two Prima-class ships during the timeframe, including the 3,571-guest Norwegian Luna in 2026. The company will also welcome a fifth ship in the Prima series in 2027. This follows the new Norwegian Aqua, which was delivered by Fincantieri in March.

According to CIN data, the five new vessels will add more than 10,000 berths to Norwegian Cruise Line Holdings’ fleet.

For a breakdown of the company’s fleet, see the Global Cruise Ship Index by Cruise Industry News,

Fincantieri: ‘Covering All Brands’ with Eye on Future Fuels

Fincantieri: ‘Covering All Brands’ with Eye on Future Fuels

Coming off a big newbuild order from Norwegian Cruise Line Holdings, Daniele Fanara, director of new building and after-sales at Fincantieri, is positive about the future.

“We are serving all segments of the market, from small luxury vessels to mega-size vessels to upper premium,” said Fanara, speaking to Cruise Industry News. “This covers all the brands in the cruise industry.”

Fanara said Fincantieri was very proud to be working with a variety of operators and being able to serve each of them in a tailored customized way.

“We have cross-fertilization with our technology, including the capacity to design the vessel,” he added.

NCLH Order

The new Norwegian Cruise Line Holdings order for eight ships includes orders for all three company brands, with new classes of ships for each of them. Norwegian, Oceania and Regent will all get new bigger ships, with orders for the Norwegian brand stretching to 2036.

“We are proud of the trust that Norwegian gave us to develop such an important program,” said Fanara.

Looking at future technologies, Fanara said the ships were being developed.

“Our attention is focused on three main fuels,” he said. “One is LNG, one is methanol, and one is hydrogen. Hydrogen is the most innovative one. We are developing new ideas on how and when we can implement hydrogen onboard the vessels.”

New ships for Oceania and Regent are being developed to be methanol-ready.

“Today there is no real answer on the fuel of the future,” Fanara continued. “It’s a matter of availability. What’s important from our side is that we are always studying the latest technology available. We are also exploring CO2 capture technology.”

Fanara said among the alternative fuels, LNG was notable in the fact it was being used today.

“Ships are sailing on LNG. The other technology is in a different phase of development. We need to monitor them so we are ready to implement them if necessary,” he explained.

Questions are coming in from cruise lines on alternative fuel practicalities, Fanara said, but with the most questions on hydrogen.

“It is the most innovative, it is the most unknown.”

Industry

Fanara called the cruise industry resilient.

“Soon after Covid, the speed at which the industry recovered and came back to strong booking and revenue levels is incredible,” he said.

Fanara expects other orders to follow, citing market demand and the value gap between cruise- and land-based vacations.

Shipbuilding Costs

Costs are up to build ships.

“A greener vessel is for sure more expensive to build,” Fanara noted. “But is the value of this additional cost worth it for the industry?

“The owners can say the ships are more expensive. We had Covid, we had wars and the result of this has been inflation. If you mix inflation and the technology transition, the result is not less expensive ships.”

NCLH: Measured Cruise Capacity Growth at 28%

NCLH: Measured Cruise Capacity Growth at 28%

A key cornerstone of Norwegian Cruise Line Holdings’ long-term strategy is measured capacity growth, said Harry Sommer, president and CEO, speaking on the company’s year-end and fourth quarter earnings call.

He pointed to the company’s newbuild pipeline of five ships and its 2023 to 2028 capacity growth, which represents 28 more supply for the company’s trio of brands in Norwegian, Oceania and Regent.

That averages out to a compound annual growth rate of five percent, he advised.

“Historically, capacity growth has led to outsized revenue and EBITDA growth and we expect this capacity growth to be no different and deliver meaningful top and bottom line growth,” Sommer noted.

“We believe that these measured capacity additions will enable us to further enhance our long-term profitability and continue to significantly strengthen our balance sheet while providing guests new and innovative experiences,” he said.

“We continue to experience strong and resilient customer demand across all three of our brands. The strong momentum we saw in 2023 has continued into 2024 with an all-time high booked position and pricing buoyed by strong wave season demand. This has led to some of the best booking weeks in the company history, which began with successful Black Friday and Cyber Monday promotions.

“In general, we continue to see healthy demand across all markets, brands and products.”

Norwegian Dawn: Mauritius blocks cruise ship over cholera fears

Mauritius has denied a Norwegian cruise ship permission to dock at the capital Port Louis over fears of a potential cholera outbreak on board.

At least 15 people on the Norwegian Dawn have been in isolation over suspected illness.

Mauritian authorities said the decision to block the ship was "taken in order to avoid any health risks".

Samples were taken for testing on Sunday, with results expected to be known on Tuesday.

The passengers developed mild symptoms of a stomach illness during a trip to South Africa, a representative of Norwegian Cruise Line Holdings said.

Mary Francovilla Dees, 69, a passenger on the Norwegian Dawn told the BBC that despite the delay the atmosphere on the ship has been "fairly calm".

"The passengers on this ship have appeared to take this in their stride," she said.

Ms Francovilla says passengers have entertained themselves by sitting by the pool, attending shows and going to the bar.

A Dutch passenger on board told BN DeStem they were told there could be a cholera outbreak on board by the captain.

There have been cholera outbreaks in southern Africa over the last few months, with Zambia being hardest hit.

Since January 2023, at least 188,000 people have been infected with cholera across seven countries in southern Africa, according to the UN. More than 3,000 people have died.

"The health and safety of passengers as well as that of the country as a whole are of the utmost to the authorities," the Mauritius Ports Authority said.

The ship arrived in Mauritius on Saturday evening after arriving a day early because it did not stop in Réunion Island.

There are 2,184 passengers and 1,026 crew members on the ship. About 2,000 planned to disembark in Port Louis, with another 2,000 expected to board at the same time.

Those who were disembarking or joining the cruise will now do so on 27 February, the Norwegian Cruise Line spokesperson said.