Cruise Companies Take Divergent Approaches to Managing Fuel Costs

Carnival is reducing fuel consumption to manage costs, while Royal Caribbean and Norwegian Cruise Line Holdings are using hedging strategies to protect against fuel price volatility. These different approaches are shaping how major cruise companies respond to rising fuel prices linked to the U.S.-Israel war with Iran.

Fuel prices have surged since the conflict began on Feb. 28, with Brent crude reaching a six-month high of $116.72 per barrel. Carnival CEO Josh Weinstein argues that cutting fuel use is more effective than hedging, while analysts note that hedging helps stabilize financial models and investor expectations.

Carnival’s third-quarter earnings showed a 26% reduction in unit fuel consumption since 2019, saving an estimated $700 million in 2026. The company spent $615 million on fuel in the third quarter, up from $425 million in the same period in 2019.