Royal Caribbean Hedges 58% of 2026 Fuel Needs Against $1.34 Billion Expense Outlook

Yahoo Finance··US·Read original
2▲1 ▼0Impact / 5
Summary · why it matters

Royal Caribbean Cruises has hedged 58% of its remaining 2026 fuel consumption at significantly below-market rates as it manages an approximately $1.34 billion fuel expense outlook for the year. The coverage offers partial protection against fuel-price increases, though second-quarter fuel expense still rose to $355 million from $279 million a year earlier on higher rates per metric ton, and the company said a 10% change in fuel prices could affect expenses by approximately $26 million over the remainder of 2026. Excluding fuel, Royal Caribbean expects 2026 net cruise costs per available passenger cruise day to remain approximately flat on a constant-currency basis, while including fuel, unit cruise costs are expected to rise approximately 1.4% on the same basis. The company added fuel hedges for 2027 when prices eased in June, with coverage as of June 30 reaching 49% of projected 2027 fuel purchases, 29% for 2028 and 14% for 2029. Among peers, Carnival Corporation expects full-year fuel expense of approximately $2.25 billion including emission allowances and reported a nearly 4% year-over-year decline in third-quarter fiscal 2026 fuel consumption, while Norwegian Cruise Line Holdings had hedged approximately 52% of projected 2026 fuel consumption and 38% for 2027 as of June 30, 2026, with second-quarter fuel expense of $219 million.

Impact on assets 3

Consumer Discretionary▲ · 3 stocks
Royal Caribbean Cruises Ltd
RCL
▲ PositiveSupplyrelevance

Royal Caribbean hedged 58% of remaining 2026 fuel needs below market rates, partially protecting against fuel-price increases.

Carnival Corporation
CCL
± MixedSupplyrelevance

Mentioned only as a peer, with full-year fuel expense of ~$2.25B and a ~4% YoY Q3 fuel consumption decline.

© 2026 MarketIVNews