Cruise stocks continue to take on water, with another oil shock driving shares within the sector lower for a seventh consecutive day.
As geopolitical tensions push the price of a barrel of oil over the psychologically key $100 threshold, fuel-dependent sectors remain pressured, resulting in a loss of 7% to 8% in shares of Carnival Corp. (CCL), Royal Caribbean (RCL), and Norwegian Cruise Line (NCLH), and -4% for Viking Holdings (VIK) on Monday, weighing on the Dow Jones Transportation index.
Fuel typically accounts for at least 10% to as much as 15% of a cruise operator’s operating expenses, making fluctuations in prices a key driver of profitability.
With fuel prices rising 63% over the past three weeks, shares of Carnival Corporation (CCL) have finished lower for two consecutive weeks, while Royal Caribbean Group (RCL) has posted weekly declines for four straight weeks.
