- Wednesday, October 16, 2024
Shares of cruise lines and airlines took a hit in premarket trading following the recent attack on Israel, causing oil futures to surge. Carnival shares dropped approximately 3%, while Norwegian Cruise Line stock fell about 4% in the premarket session. Royal Caribbean stock also experienced a decrease of more than 2%. Additionally, shares of American Airlines, Delta Air Lines, and United Airlines all traded roughly 2% lower.
The escalation in oil and gas prices can be attributed to concerns that the conflict may spread throughout the broader Middle East region. According to a report by The Wall Street Journal, Iran allegedly played a role in helping Hamas plan the attack.
Furthermore, investors were already on edge due to the potential impact of rising fuel costs on cruise lines and airlines. Carnival, in particular, lacks hedging measures against fuel price volatility. Last month, the company cautioned that it anticipates a further 20% increase in fuel prices during the current quarter.
In light of these developments, Carnival's Chief Executive Josh Weinstein stated, "While we've experienced fuel price volatility in the past, there has only been one other period in the last 15 years where our fuel price has been this high."
All Rights Reserved © 2024
Post a comment