NCLH reports softer demand and booking lag despite rise in revenues

Norwegian Cruise Line Holdings (NCLH) has reported it “remains below its optimal booked position for the next 12 months” in its latest earnings release.

The parent company of Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises said 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”.

The business said it expected the full opening of revamped private island Great Stirrup Cay on September 4 “will improve demand to Caribbean itineraries over time”.

Total revenue grew by 4.9% to $2.9bn for the quarter, while adjusted Ebitda – a measure of profitability – was “better than expected” despite a 4.1% decline to $666m.

The company identified further annualised savings of $100m, in addition to the $125m announced in the previous quarter, but noted the benefits of these savings would have “a limited impact” on remaining 2026 financial results.

Full-year Ebitda is forecast to reach $2.5bn, with adjusted net income projected at approximately $700m.

NCLH chief executive John W Chidsey said it was “a solid second quarter”, but acknowledged the business was in “the early stages of our turnaround”.

Earlier in the year, Chidsey, who replaced Harry Sommer, pledged to “correct imbalances” in the business as an activist investor called for board changes and a new strategic plan.

Chidsey said: “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 $100m 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.”