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Carnival Cuts Profit Forecast Amid Rising Costs, Shares Drop

3/28/2026

31 3 Full Breakdown

Summary

Story summary

Carnival Corporation cut its annual profit forecast due to rising fuel costs and geopolitical tensions.
It now expects adjusted earnings per share of about $2.21, down from $2.48.
Carnival is the only major U.S. cruise line without a fuel hedging strategy.
Bookings for 2026 are up, with nearly $8 billion in customer deposits.
Carnival announced a $2.5 billion share buyback that led to a 3% drop in its shares.

History

Historical Context

The 1973 Oil Crisis, triggered by an Arab oil embargo in response to the Yom Kippur War, caused oil prices to quadruple, severely impacting global economies. The U.S. faced significant inflation and unemployment, with the crisis marking the end of a post-war economic boom. Today, Carnival Corporation's rising fuel costs reflect ongoing vulnerabilities in energy strategy, echoing lessons from this pivotal event.

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Story summary

Carnival Corporation cut its annual profit forecast due to rising fuel costs and geopolitical tensions.
It now expects adjusted earnings per share of about $2.21, down from $2.48.
Carnival is the only major U.S. cruise line without a fuel hedging strategy.
Bookings for 2026 are up, with nearly $8 billion in customer deposits.
Carnival announced a $2.5 billion share buyback that led to a 3% drop in its shares.

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