Norwegian Cruise Line Holdings expects net yields to decline three to five percent, the company said in its earnings announcement on Monday.

“This updated guidance reflects both the impact of the macroeconomic environment and the extent to which those pressures have compounded the execution and commercial challenges already facing our business,” said Mark Kempa, CFO, speaking on the company’s earnings call.

“In terms of pacing through the quarters, we currently expect the third quarter to be significantly weaker than the second quarter, reflecting our greater exposure to Europe, which represents approximately 38% of our deployment in the quarter, as well as continued softness in markets such as Alaska, which we discussed last quarter.

“Looking to the fourth quarter, we are assuming the consumer environment remains pressured, although net yields should improve from Q3, supported in part by the opening of Great Tides Water Park at Great Stirrup Cay by the end of the third quarter,” he added.

John Chidsey, CEO, explained that the recently geopolitical developments have added pressure to an already challenged backdrop, particularly in the European market this summer and demand for close-end bookings.