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Norwegian Cruise Line Cuts 2026 Outlook After Beating Q1 Profit Target

Rising fuel costs from Middle East turmoil prompted a reset in the face of soft Europe bookings.

Overview

  • Shares of Norwegian Cruise Line fell about 6% to 8% in premarket trading Monday after the company slashed its full‑year forecast, with Carnival and Royal Caribbean also edging lower.
  • For the first quarter, the company posted adjusted earnings of $0.23 per share, topping estimates, while revenue rose 10% to $2.33 billion and came in a touch below forecasts.
  • New guidance calls for adjusted EPS of $1.45 to $1.79 and adjusted EBITDA of $2.48 to $2.64 billion, and net yield, which tracks revenue per available capacity, is now expected to decline 3% to 5% versus 2025.
  • Executives cited higher fuel tied to the Middle East conflict, weaker demand for European itineraries, a booking curve that started the year behind target, and self‑inflicted execution issues including shorter Caribbean trips.
  • Management outlined $125 million in annual SG&A savings and detailed fuel hedges that cover about 51% of 2026 at $534 per metric ton, while projecting a higher net fuel cost of $782 per ton, leaving summer Europe bookings and fuel prices as key swing factors.