Norwegian Cruise Line Holdings has "begun taking decisive actions to strengthen execution and accountability across the company," according to new CEO John Chidsey.
The cruise giant reported its first quarter 2026 financial results earlier this month, revealing plans to overhaul its marketing efforts and streamline its shoreside organization to cut costs and drive growth in the wake of pressure from activist investor Elliott Investment Management.
"We delivered strong first quarter results, and more importantly, we have already begun taking decisive actions to strengthen execution and accountability across the company, which will enhance results over the longer term," Chidsey said in a statement accompanying the cruise company's Q1 results on May 4.
"During the quarter, we acted with urgency to simplify, optimize, and streamline the organization, including executing SG&A savings initiatives totaling $125 million in expected run rate savings. These are long-term structural actions that we believe will help offset near-term pressures and position the business for stronger performance over time," he added.
"As we move through the year, we will continue to manage costs and focus on revenue growth to align resources with the high-growth, high-value areas of the business. I remain confident and encouraged that we are building a leaner, more effective and nimble organization that positions NCLH for sustainable long-term value creation," Chidsey concluded.
Norwegian Aqua in Tortola (Photo Credit: Norwegian Cruise Line)
In a post-earnings call last week, Norwegian executives said that annual salary and benefits costs would reduce by as much as 15 percent for 2026.
Chief Marketing Officer Kiran Smith, who was hired last summer, is leaving the company on June 1 in the wake of underwhelming returns on marketing efforts.
"We have to get those fundamentals right in order to drive demand more consistently and put ourselves in a better position to optimize pricing," Chidsey told reporters on the call.
Ongoing conflict in the Middle East will be another challenge for the cruise line moving forward as oil prices surge and demand has softened in Europe, a key market for Norwegian.
NCLH said its "experiencing headwinds related to disruptions in the Middle East, including higher fuel expense and signs of softer demand as consumers reevaluate travel plans, particularly to Europe."
"As previously noted, the company entered 2026 behind its targeted booking curve, and these headwinds have hindered the company's ability to accelerate bookings and close that gap."
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