Published: Oct. 9, 2023 at 6:58 a.m. ET
By Will Feuer
Shares of cruise lines and airlines fell in premarket trading as investors, digesting the worst attack on Israel in decades, sent oil futures higher.
Carnival shares dropped about 3% and Norwegian Cruise Line stock fell about 4% in the premarket session, while Royal Caribbean stock slid more than 2%. Shares of American Airlines,…
By Will Feuer
Shares of cruise lines and airlines fell in premarket trading as investors, digesting the worst attack on Israel in decades, sent oil futures higher.
Carnival shares dropped about 3% and Norwegian Cruise Line stock fell about 4% in the premarket session, while Royal Caribbean stock slid more than 2%. Shares of American Airlines, Delta Air Lines and United Airlines all traded about 2% lower.
Benchmark oil and gas prices jumped in early trading, driven by concerns that the conflict could spill over into the broader Middle East region. The Wall Street Journal reported on Sunday that Iran had helped Hamas plot the attack.
Investors were already wary of rising fuel costs hitting cruise lines and airlines. Carnival, which generally doesn’t hedge against the fuel price volatility, warned last month that it expects fuel prices to rise another 20% in the current quarter.
“While we’ve experienced volatility in fuel prices before, there’s only been one other period in the last 15 years that our fuel price has been this level,” Carnival Chief Executive Josh Weinstein said.
Write to Will Feuer at Will.Feuer@wsj.com