"A few minutes later they said, 'well it's a more serious problem than we thought, so sorry we have to turn back.'"
The problem was with the engine and there was no danger, but it was not a minor problem, Ms Gabb said they were told.
The ferry was slowly making its way back to Auckland and she said it had taken around 45 minutes to pass North Head.
"We're just idling back very slowly, there's no unpleasant smell or anything like that, no danger, everyone's very cool calm and collected."
Passengers were told it was company policy to turn back to Auckland in such situations.
"It's going to be a major inconvenience for a lot of holiday makers."
The ferry was about three-quarters full and is believed to be the QuickCat.
Passengers would be put on the company's new vessel Kotuku, Ms Gabb said.