Carnival Fuel Addiction Eats Profits

Carnival Cruise Line (CCL) reported improved expenses and then promptly lost everything to higher fuel prices. The fundamental nature of the cruise business is constant fuel costs.

They may be the biggest and the best from a consumer point of view. From an operating point of view they are OPEC’s best friend. Before we even get into how green this business really is, Carnival has to address the Achilles heel of oil dependency.

From the earnings release they are entirely silent on the issue. Is management awake on this one?

Disclosure: No position in any stocks mentioned in this post.