Why Norwegian Cruise Line Stock Fell 24% in March

Cruise stocks have rebounded strongly from the pandemic, but Norwegian Cruise Line (NYSE: NCLH) has lagged behind peers like Carnival and Royal Caribbean, in part due to mismanagement and a decline in customer satisfaction.

Those trends were on display last month as Norwegian disappointed the market with its fourth-quarter earnings report, and the war in Iran pressured the travel sector more broadly, leading to soaring oil prices and geopolitical instability.

According to data from S&P Global Market Intelligence, the stock finished the month down 24%. As you can see from the chart below, the stock fell sharply on its earnings report at the beginning of the month, and trended lower with the S&P 500 from there.

NCLH data by YCharts

Norwegian's still looking for a rising tide

Norwegian's revenue in the quarter rose 6% to $2.2 billion, but that was well short of estimates at $2.34 billion. The company credited higher capacity days, or more available berths, for the growth, though it was not enough to match expectations, and management acknowledged execution gaps.

On the bottom line, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 11% to $2.73 billion, and adjusted earnings per share jumped 46% to $0.28, as it held costs mostly flat, which beat expectations at $0.27.

Norwegian's guidance for 2026 was also disappointing as it expects net yields to be flat in constant currency, even as cruise costs are forecast to rise 0.9%, excluding fuel, which will take a hit on the bottom line.

It also called for adjusted earnings per share of $2.38, up from $2.11, but below the consensus at $2.60.

Norwegian's struggles have attracted attention from activist investor Elliott Investment Management, which called for urgent changes to the board at the beginning of the month, and by the end of the month, Norwegian had cooperated with Elliott to name five members to its board, though that news didn't lift the stock.

Image source: Getty Images.

What's next for Norwegian

Norwegian didn't comment on the impact of higher oil prices in the report, which came out in early March, but Norwegian does hedge its fuel costs, unlike Carnival, and 51% of 2026 consumption was hedged as of Jan. 16, 2026.

That could buffer the blow from higher fuel prices if they stay elevated, but Norwegian has more fundamental problems to solve in order to catch up to its peers.

With a new board of directors place, investors could see some progress in the coming months.

Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool recommends Carnival Corp. The Motley Fool has a disclosure policy.