Norwegian Cruise Lines CEO Harry Sommer said Thursday said there was a “unique opportunity” as a cruise operator to benefit from developments in the Middle East and Russia.
“I’d be remiss if I didn’t point out some of the positive things that are coming out of the administration. I think this push for sustained peace in the Middle East and potentially between Ukraine and Russia can be a significant tailwind for us in 2026,” he said.
Last year, conflicts in the Middle East and the Red Sea led to the cruise operator, whose brands include Norwegian, Oceania, Regent, and Seven Seas, to cancel all its Red Sea itineraries through 2025 and reroute all its ships to avoid the region.
Using Russia as an example, Sommer said a third of the company’s fleet (11 ships) would be based in Northern Europe in its summer 2026 deployment, and that was “all without St. Petersburg being available.”
“If St. Petersburg was to become available for the summer 2026 season, I think as a company, with one-third of our fleet based in that region of the world, we could disproportionately benefit from positive things in that region,” he said.
Norwegian Cruise Lines were “very pro the work that the [Trump] Administration is doing in trying to bring peace to those two regions,” he said.
Taxes on Cruise Lines in the U.S.
Asked about recent comments by U.S. Secretary of Commerce Howard Lutnick in a Fox News interview, in which he said cruise operators would pay more taxes under the Trump administration, Sommer said it was “really complicated.”
“Considering how many moving pieces they are and the complexity of our business… and the relatively short amount of time our ships are in U.S. waters, it’s really hard for us to speculate on what this would mean to us. So I won’t,” he said.
The company generated a record full-year total revenue of $9.5 billion in 2024, increasing 11% from 2023.
It continues to experience “strong consumer demand” for its offerings across itineraries and brands throughout 2025 and into 2026.
Investing in Private Island Destination
“We are making a critical investment in a new 2-ship pier scheduled to open in late 2025. This strategic enhancement at one of our highest-rated ports will be a game changer for our guest experience,” Sommer said.
- Nearly half the fleet tested with biodiesel blends
- 60% of ships are equipped with shore power capability
Culture Shift Drives Strategy
“This starts with guests. It doesn’t start with financials,” Sommer said. “If we can get the product right and happy guests, the financials follow, which our 2024 results are testament to.”
There was “a fundamental shift in our organizational culture,” he said.
Some of the “cultural shifts” have included:
- Employees: building a “performance-driven culture with clear values.”
- Enhancing product offerings across all three cruise lines.
- Adding vessels over a multi-year timeline.
Sommer said that the early results of the strategy drove margins up to almost 500 basis points.
The company also made significant product investments, including implementing fleet-wide Starlink WiFi.
