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New CEO John Chadds identified a lack of enterprise-wide coordination and a siled culture as the primary drivers of recent poor performance.
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Management acknowledges the ‘self-inflicted wounds’ of a 40% capacity increase in the Caribbean ahead of supporting infrastructure and marketing readiness.
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Performance has been hampered by underinvestment in technology, revenue management capabilities, and customer-facing systems associated with ship investment costs.
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The company has overhauled its leadership team in key roles in recent months to move toward a culture of accountability and urgency.
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Strategic focus is the drive to ‘one job’: streamlining execution and cutting through bureaucracy to ensure business strategies align with deployment schedules.
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Despite the execution challenges, the luxury portfolio (Regent and Oceana) continues to show strong demand, with Oceana Sonata having a record-breaking opening day.
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Full-year 2026 net yields are expected to be nearly flat, with a 1.6% decline in Q1 followed by modest stability in the second half of the year.
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Guidance Price pressure in the Caribbean and Alaska will continue in the near term due to increased industry capacity and domestic trade uncertainty.
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Management expects the benefits of new revenue management systems and leadership changes to phase in most meaningfully in 2027 given the long lead-time of bookings.
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The opening of the Great Tides Waterpark in the summer of 2026 is expected to further increase the island’s supply and demand will move into 2027.
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Financial priorities are focused on exploration, with net profit expected to remain flat at 5.2x in 2026 due to the short-term impact of two new vessel deliveries.
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Record non-cash write-down of $95 million in Q4 2025 related to certain information technology assets.
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The cost savings program extends from shipboard efficiency to a systematic review of SG&A to drive more operational efficiency.
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Management closely monitors geopolitical tensions in the Middle East; While no current trips are affected, the company is maintaining 51% of its 2026 fuel needs.
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New ship orders for all three brands are secured to lock in long-term growth slots through 2037 with minimal initial investment costs.
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