Sommer: New NCLH Leadership Brings ‘Fresh Perspective and Energy’

“With new leadership not only in my seat but in all three of our award-winning brands and most recently for our vessel operation function, there is a possible feeling of reinvigoration and excitement about the future across the entire company,” said Harry Sommer, president and CEO of Norwegian Cruise Line Holdings (NCLH), speaking on the company’s second-quarter earnings call.

Sommer took over as president and CEO of the company earlier this year, following Frank Del Rio’s retirement.

“We are approaching every decision with fresh perspective and new energy, challenging the status quo at every level and encouraging our entire team to think outside of the box and come to the table with new ideas, however big or small,” Sommer said, noting his focus is on the future and how to refine and enhance our strategy to optimize the company’s existing fleet of high-quality assets, further differentiate the business model, build resiliency, advance efforts to drive a positive impact on society in the environment and ultimately drive more value.

“Our executive team has an average of over 20 years in the cruise industry and nearly all have been with NCLH for a decade plus,” he continued.

“I have the unlost confidence that this team is the right one to take the company to even greater heights.”

Norwegian Cancels Most of Spirit’s Sailings for 2024 and 2025

After announcing the cancellation of the ship’s 2024 summer program, Norwegian Cruise Line is cancelling more scheduled sailings onboard the Norwegian Spirit.

According to different statements sent to booked guests, all of the 2025 departures were cancelled, as well as additional dates in 2024.

Essentially leaving the 1999-built ship with no schedule beyond next April, the new cancellations are the result of redeployment moves, Norwegian Cruise Line said in one of the letters.

“As a company, we are committed to providing exceptional vacation experiences, both aboard our ships and by taking our guests to some of the most sought-out destinations around the world. As a result of a fleet redeployment, Norwegian Spirit’s sailings from February 8, 2025, through and including November 23, 2025, have been cancelled,” the company explained.

“We sincerely apologize for the inconvenience this may cause,” Norwegian added.

In 2024, the sailings not long going ahead include cruises previously scheduled to depart between May through early June, in addition to itineraries scheduled to sail between September and December.

The Norwegian Spirit was scheduled to sail in the Pacific during the period, offering itineraries across Australia, New Zealand, Alaska, Hawaii and Tahiti.

While no cruises had originally been planned for January and early February 2025, and the ship’s 2024 summer program had already been cancelled back in May, the new cancellations leave the Spirit with no schedule after the 2023-2024 winter season.

Impacted passengers will receive several compensations, including full refunds and discounts for rebooking on different dates.

Originally built for Star Cruises in 1999, the Norwegian Spirit is currently one of the oldest in the Norwegian Cruise Line fleet.

With a capacity for 2,000 guests, it went through a $100-million refurbishment in early 2020. The major modernization project saw the addition of 14 new venues to the ship’s public areas, in addition to cabin updates and technical upgrades.

Norwegian Cruise Occupancy Ramp Accelerates to Above 100%

Norwegian Cruise Line Holdings had an average load factor of 101.5 per cent in the first quarter, according to company executives speaking on the corporation’s first quarter earnings call.

“We reached load factors of 101.5 per cent in the first quarter, exceeding our guidance and breaking triple-digit levels for the first time in three years with some voyages exceeding occupancy above 115 per cent,” said Harry Sommer, incoming president and CEO of Norwegian Cruise Line Holdings.

“With this significant achievement, we have also nearly closed the occupancy gap versus 2019 levels,” he said.

For the second quarter, Sommer said he expects 105 per cent occupancy on average across the fleet.

“This average is slightly below 2019 levels as a result of our strategic shift to longer, more immersive itinerary at the Norwegian Cruise Line brand, naturally resulting in fewer thirds and fourths, which is what historically pushes passenger occupancy above the 100 per cent mark, all while enhancing margin over time,” he explained.

Most Recent Occupancy Rates:

Q1 2022: 48%
Q2 2022: 65%
Q3 2022: 81%
Q4 2022: 87%