"Carnival's most recent quarter showed the tension in sharp relief. The company reported adjusted EPS of $0.20 against a consensus estimate of $0.1836, a solid beat, and nearly 85% of 2026 capacity is already booked at historically high constant-currency prices."
"Yet, Carnival cut its full-year adjusted EPS guidance to $2.21, absorbing more than $500 million in adverse fuel price impacts versus prior assumptions. The core problem is structural: Carnival doesn't hedge fuel costs, leaving it fully exposed to commodity swings."
"CEO Josh Weinstein acknowledged the dynamic directly, stating, 'This performance supported an increase to our full year operational outlook of nearly $150 million, helping to mitigate the impact of higher fuel prices.'"
Carnival Corporation and Norwegian Cruise Line stocks both retreated 4% as fuel costs negatively impacted their strong booking demand. Despite a record booking story, Carnival's adjusted EPS guidance was cut to $2.21 due to over $500 million in adverse fuel price impacts. The company does not hedge fuel costs, leaving it vulnerable to price swings. Carnival is implementing efficiency measures to mitigate these impacts, including reducing fuel consumption per available lower berth day by 4.7% and adjusting itineraries.
Read at 24/7 Wall St.
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