Skift Travel News Blog

Short stories and posts about the daily news happenings around the travel industry.

Cruises

Norwegian Cruise Line CEO Frank Del Rio to Step Down

11 months ago

Frank J. Del Rio will step down as president and CEO of Norwegian Cruise Line Holdings, effective June 30, the cruise company announced Monday. Harry J. Sommer, president and CEO of the company’s Norwegian Cruise Line brand, will officially succeed him on July 31. The transition process starts on April 1.

Del Rio has been president and CEO of Norwegian Cruise Line Holdings since 2015. He led the company through the Covid pandemic, which devastated it and the global cruise industry, and its ongoing recovery. He’ll be heading into retirement and serve as a senior advisor to the board of directors through 2025. Del Rio has been in the cruise industry for over 30 years.

Norwegian Cruise Line ship at Puerto Vallarta, Mexico. Source: Alonso Reyes

Sommer, Del Rio’s successor, has more than 30 years of experience in the industry and rose through the ranks of Norwegian Cruise Line Holdings over eight years. His prior roles include president international, executive vice president of president international business development and chief integration officer. Sommer will be succeeded by David J. Herrera, who currently serves a chief consumer sales and marketing officer of Norwegian Cruise Line.

Cruises

Norwegian Cruise Line Posts a $1 Billion First-Quarter Loss

2 years ago

Norwegian Cruise Line Holdings Ltd has reported a net loss of $1 billion for the first quarter of this year, as the Omicron variant hit sailings.

The Russia-Ukraine conflict also resulted in the cancellation or modification of 60 sailings, which included all voyages with calls to ports in Russia.

However, the result is an improvement on the same quarter in 2021, when it racked up losses of $1.4 billion. Revenue also increased to $521.9 million, compared to $3.1 million in 2021, as cruise voyages restarted.

Total cruise operating expense increased 266.1 percent in the 2022 first quarter, compared to 2021, due to the resumption of sailings but also higher payroll, fuel, and “direct variable costs of fully operating ships.” Inflation also affected food, fuel and logistics costs.

While as of May 7 its entire fleet was back up and running, it was operating at just 48 percent capacity in the first three months of 2022.

“Last week we reached the biggest milestone yet in our Great Cruise Comeback as Norwegian Spirit, the last ship in our fleet to resume sailing, welcomed guests on board in Papeete, Tahiti,” said Frank Del Rio, president and CEO. “The herculean effort to restart our fleet would not have been possible without the incredible fortitude of the entire Norwegian team and the unwavering support of our key partners and stakeholders around the world.”

Looking ahead, its advance ticket sales balance increased $418 million in the quarter to $2.2 billion as of March 31, 2022. This includes $0.6 billion of future cruise credits, or 27 percent of the total deposit balance.

Gross advance ticket sales were $1.1 billion during the quarter, the highest level since the start of the pandemic.

The cruise line has removed all calls to ports in Russia from its itineraries in 2023.