Cruise stocks fall as fuel-cost pressure weighs on sector
Norwegian, Royal Caribbean and Carnival shares each declined by double-digit percentages over the preceding month as oil prices rose.
Norwegian Cruise Line Holdings shares were down 16% over the preceding month, trading 1% higher at $15.62 on the reported Wednesday afternoon. The assessment attributed the longer decline to pressure from fuel costs across the cruise sector rather than to a Norwegian-specific development.
The company’s major peers recorded similar monthly losses. Royal Caribbean shares were also down 16% over the same period, while Carnival shares had declined 15%.
Energy investments moved in the opposite direction. The Energy Select Sector SPDR ETF gained 9% over the preceding month to $65.16. The report said crude oil climbed above $86 per barrel in late August following U.S. strikes on Iran. It also said West Texas Intermediate settled at $91.48 on September 1 after gaining $5.32 over the prior month.
According to the report, consumer demand for cruises had not weakened during the preceding month. It said a retreat in crude prices from elevated levels would reverse the pressure on cruise-line margins.