Norwegian Cruise Line cut its annual profit forecast on Monday, as the cruise operator battles surging fuel costs linked to the war in the Middle East and tepid demand for its sea voyages, sending its shares
Norwegian Cruise Line cut its annual profit forecast on Monday, as the cruise operator battles surging fuel costs linked to the war in the Middle East and tepid demand for its sea voyages, sending its shares down 7% in morning trading.
Global oil prices surged above $100 a barrel after U.S. and Israeli strikes on Iran led to the closure of the Strait of Hormuz. More than $50 billion worth of crude oil supply has been lost since the start of the war, according to Reuters calculations as of mid-April.
Rivals Carnival and Royal Caribbean have also highlighted potential hits from rising fuel costs, and several global airlines have warned of jet fuel shortages.
About half of its fuel consumption for the year was hedged, and net of that, Norwegian expects annual fuel prices of $782 per metric ton, based on spot rates as of April 28, up from the prior $670.
The Middle East conflict has forced consumers to re-evaluate travel plans, particularly to Europe, Norwegian said, adding that the current booking range was below optimal after execution missteps led to shorter Caribbean itineraries.
Norwegian now expects fiscal 2026 adjusted profit between $1.45 and $1.79 per share,
Content Original Link:
" target="_blank">
