Cruise stocks retreat as higher oil prices raise fuel-cost concerns
Norwegian Cruise Line, Carnival and Royal Caribbean Group shares declined by midday Thursday, with the moves attributed to rising crude prices rather than company-specific developments.
Norwegian Cruise Line shares were down 5% at $16.50 by midday Thursday, while Carnival fell 4% to $25.65 and Royal Caribbean Group declined 3% to $290.76, according to the report.
The declines were attributed to higher crude-oil prices and the resulting pressure on cruise operators’ fuel costs and margins. The report said there was no company-specific news driving the moves. West Texas Intermediate crude stood at $86.58 as of Tuesday, representing a 2% increase from the previous week and a 3.7% rise from the previous month.
The three cruise companies entered the session with differing year-to-date performances. Royal Caribbean had gained 9% and carried a reported market capitalization of $77.67 billion. Norwegian was down 22% for the year before Thursday’s trading and had a market capitalization of $7.59 billion. Carnival had declined 11% year to date entering the session.
