NCLH Identifies $100 Million in Savings and Overhauls Commercial Strategy

Norwegian Cruise Line Holdings (NCLH) announced it has identified an additional $100 million in annual savings, as part of a review of its commercial strategy aimed at reversing the decline in yields across its cruise operations. The measures will be rolled out gradually through 2028.

The new savings, which add to the $225 million already identified previously, will come from optimizing guest and crew air travel, as well as changes to promotional offers. According to the company, these measures will be phased in gradually through 2028.

In the third quarter, NCLH reported adjusted net income of $514 million, equivalent to adjusted earnings per share of $1.12, above the guidance issued in July. Total revenue came in at $2.9 billion according to Sea-Trade Cruise and $2.947 billion according to Baird Maritime, while occupancy stood at 106.5%.

The company raised its adjusted earnings per share guidance for 2026 to approximately $1.70, up from the $1.50 projected in July, which according to Baird Maritime implies an increase in adjusted net income guidance from $700 million to $789 million. NCLH expects net yield to decline by about 4.4% in 2026 and return to growth of 1% to 2% in 2027, with a more pronounced acceleration in the second half of the year.

NCLH also announced that Meghan Montana, current chief strategy officer, will succeed Mark Kempa as chief financial officer effective January 1, 2027. Kempa, who has been with the company for more than 25 years according to Splash Cruise, will remain on as an advisor until June 2027.

As of the end of September, the company's total debt stood at $15.1 billion, with net debt of $14.8 billion and net leverage of 5.5 times, following the issuance of $950 million in 8.75% senior notes due 2031. NCLH currently operates a combined fleet of 33 vessels across Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises, with another 16 vessels scheduled for delivery through 2037.