The Firm That Pressured Southwest Airlines Is Now Moving on Norwegian Cruise Line

February 17, 2026 Randy Young

Elliott Investment Management, the activist investor that has pushed for sweeping changes at major companies, including Southwest Airlines, is now setting its sights on Norwegian Cruise Line Holdings (NCLH).

In a newly released letter and highly critical investor presentation, Elliott disclosed a significant stake in Norwegian and outlined what it calls a plan to unlock substantial shareholder value. The move adds new pressure on the cruise operator at a time when the industry is still navigating high debt levels and evolving consumer demand.

Elliott Builds a Large Stake in Norwegian

According to public disclosures and reporting by The Wall Street Journal, Elliott has accumulated a sizable position in Norwegian Cruise Line Holdings. The firm describes the cruise company as deeply undervalued and argues that strategic and operational changes could dramatically improve performance.

In its letter to Norwegian’s board of directors, Elliott outlined concerns about stock underperformance relative to peers and broader market indices. The activist investor also highlighted what it believes are opportunities to improve margins, optimize capital allocation, and strengthen execution.

Elliott’s campaign includes a detailed presentation that calls for enhanced oversight, refreshed board leadership, and a sharper focus on long-term value creation.

A Familiar Playbook After Southwest

This is not Elliott’s first high-profile transportation sector campaign. The firm recently took action at Southwest Airlines, pushing for leadership and strategic changes after a period of operational and financial challenges.

That campaign resulted in significant board turnover and strategic shifts at Southwest, including changes to long-standing policies such as its open seating model and free checked-bag policy. Under Elliott’s influence, Southwest carried out corporate layoffs, including roughly 1,750 jobs, about 15% of its corporate workforce, for the first time in the airline’s history.

While every situation is unique, Elliott’s involvement in Norwegian signals the potential for similar pressure on management and governance.

What Elliott Is Pushing For

In its public materials, Elliott argues that Norwegian’s brands, fleet, and market positioning provide a strong foundation, but that execution and governance improvements are needed to unlock value.

Called “Norwegian Now,” the presentation focuses on :

Closing what it views as a valuation gap versus peers
Improving financial discipline and capital allocation
Strengthening operational performance
Enhancing board oversight and accountability

Elliott characterizes Norwegian as a company with strong assets that are not currently reflected in its share price. The activist investor believes that a combination of strategic and governance changes could significantly re-rate the stock.

art on the concourse on norwegian prima — Elliot’s presentation highlights the $2 million art walk on the *Norwegian Prima* as wasteful spending.

The presentation is highly critical of Norwegian’s leadership and Board of Directors. Elliott specifically takes issue with the appointment of CEO John Chidsey, noting that although he previously served on the board, he has no prior experience leading a cruise or travel-related company. Chidsey previously served as CEO of Subway. According to the Wall Street Journal, they are looking at Adam Goldstein, the former president and CEO of Royal Caribbean International, for a board seat to help guide the future of NCLH.

The presentation also highlights what Elliott believes are examples of excessive or questionable spending in recent years. Among the items cited:

The Prima Class Le Bistro chandeliers, reportedly costing $100,000
The Iceland launch event for the Prima Class that was billed as the country’s largest event ever
The $2 million Concourse art walk and sculpture garden on Prima
Leadership’s stated willingness to “spend whatever we have to spend to fill the vessel without discounting.”
The downsizing adjustments made to later Prima Class ships

See the full presentation

What This Means for Cruisers

For guests sailing on Norwegian, short-term impacts are unlikely. Activist campaigns typically focus first on board-level changes, financial strategy, and leadership rather than immediate guest-facing product adjustments.

However, over time, activist involvement can influence capital spending, fleet strategy, onboard investment, and even brand direction. If Elliott pushes for stronger margins or asset optimization, that could affect everything from ship refurbishment schedules to the onboard experience.

Whether Elliott’s involvement leads to collaboration with Norwegian’s board or a more contentious proxy fight remains to be seen. What is clear is that one of Wall Street’s most aggressive activist firms now has cruising firmly in its sights.

For an industry that has spent the last several years rebuilding, Elliott’s move adds a new dynamic that could shape Norwegian’s next chapter.