Norwegian Cruise Line Holdings is maintaining its full-year earnings guidance despite some "choppiness," said CEO Harry Sommer during NCLH's Q1 earnings call on Wednesday.
Sommer further said the choppiness happened in the first three weeks of April, mostly for inventory remaining on Europe cruises departing in the third quarter.
In the beginning of the month, President Trump announced his administration's "Liberation Day" tariffs, and Sommer surmised that "perhaps there was some hesitancy for Americans to book long-haul trips in this environment."
Sommer added that the Q3 weakness in Europe applied to all three of the company's brands -- Norwegian Cruise Line, Oceania and Regent Seven Seas Cruises -- with the two luxury brands having a slightly larger percentage of itineraries in Europe than NCL.
While Sommer said NCLH "did do a little bit of close-in discounting" for the Europe cruises departing in Q3, Sommer emphasized that NCLH will maintain pricing discipline for fourth-quarter cruises and beyond.
"We are super-focused about keeping price integrity because that provides us with a solid foundation for growth," he said.
Ship refurbishments affected Q1 revenue
NCLH reported that revenue in Q1 was $2.1 billion, an approximate 3% decrease from a year earlier primarily due to ships that were in drydock getting upgrades. The Norwegian Bliss and Norwegian Breakaway each received enhancements during Q1.
The company reported a $40.3 million net loss in the quarter due to the reduction in capacity and a foreign-exchange loss of $23 million. Also, there were increased costs associated with the delivery and debut of NCL's new ship, Norwegian Aqua.