Cruise operators face choppy waters as rising oil prices lift fuel costs, with analysts warning Carnival Corp could take the biggest hit to its 2026 profit as it is the only major U.S.
Cruise operators face choppy waters as rising oil prices lift fuel costs, with analysts warning Carnival Corp could take the biggest hit to its 2026 profit as it is the only major U.S. cruise line that does not hedge fuel.
Oil prices have risen more than 35% since the beginning of the conflict in Iran, as attacks on oil and transport facilities across the Middle East and disruptions to energy flows through the Strait of Hormuz raised concerns about global supply.
Brent futures crossed $100 per barrel on Friday, compared with $72.48 before the conflict began. Iran has warned that oil prices could surge as high as $200 a barrel.
Cruise lines, which rely on heavy fuel oil and marine gas oil among other fuel types, turn to hedging to lock in prices via financial contracts and protect against sudden swings.
However, Carnival Corp in the U.S. is an exception.
A 10% change in fuel cost per metric ton would reduce Carnival's 2026 net income by $145 million, compared with $57 million for rival Royal Caribbean, according to the latest company filings.
Norwegian Cruise Line said it has not updated its fuel hedges from its earnings from early
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