Norwegian Cruise says CEO to retire, insider Sommer will succeed

(Reuters) – Norwegian Cruise Line (NYSE:) Holdings Ltd said on Monday CEO and company veteran Frank Del Rio has decided to retire and would be succeeded by insider Harry Sommer.

Frank Del Rio, who has been in the cruise industry for 30 years and took the helm at Norwegian Cruise Line in 2015, will step down from the role at the end of June, but would serve as a senior adviser to the company’s board through 2025.

Sommer, 55, has served as CEO of Norwegian Cruise Line brand since 2020 and president (international) for some of the company’s brands including Oceania Cruises and Regent Seven Seas Cruises.

The company said David Herrera, 51, who has served as chief consumer sales and marketing officer of Norwegian Cruise Line brand since 2021, will succeed Sommer as president of the brand, effective April 1.

Shares of the Miami, Florida-based company were up about 1% in premarket trade.

In February, the cruise operator’s forecast for its first annual profit in three years fell short of analysts’ expectations as it battles with soaring fuel and labor costs.

Norwegian Cruise Line forecast an adjusted profit of 70 cents per share for 2023, compared with estimates of $1.06, according to IBES data from Refinitiv.