By Callum Keown
Norwegian Cruise Line named five new directors Friday as it struck a deal with activist Elliott Investment Management. In another environment, that might have been enough to lift the stock.
But the stock was down another 2.6% in early trading -- and shares have tumbled more than 20% since the start of the Iran war, as surging fuel prices weigh on the sector.
The cruise operator is at least looking to add valuable experience -- both for the future and to better handle the developing crisis. It announced the appointment of five new directors to its board, including former British Airways CEO Alex Cruz and former Disney Experiences CFO Kevin Lansberry.
It comes after pressure from Elliott, which disclosed a stake of more than 10% in the company last month. Elliott called for new directors, a leadership change and a business plan.
Norwegian's appointments seem to have eased Elliott's leadership concerns -- the activist had previously described the hiring of former Subway Restaurants boss John Chidsey as CEO as "troubling news."
It now sees potential for the stock under his leadership.
"As NCLH's largest investor, we see the potential for significant value creation under John's leadership and we believe the experience and credibility of this newly appointed Board will help restore investor confidence and return the Company to best-in-class financial performance, " Elliott Partner John Pike and Portfolio Manager Bobby Xu said in a statement Friday.
Those hires and the renewed confidence of Elliott suggest some longer-term optimism may be warranted.
But in the short term, Norwegian can appoint all the board members it wants -- the stock will still be driven largely by fuel prices and broader macro pressures.
Write to Callum Keown at callum.keown@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
March 27, 2026 11:07 ET (15:07 GMT)
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