TORONTO — Higher oil prices are already driving up airfares, and they could have an impact on cruise fares too.

Just like airlines, cruise companies have the option of hedging fuel – but also just like many airlines, at least one very big name in cruising prefers to go ʻmarket-rate’ with its fuel purchases, rather than lock in rates in advance.

While two of the biggest cruise companies, Royal Caribbean Group and Norwegian Cruise Line Holdings (NCLH), have hedged up to half their fuel costs for 2026, the world’s biggest cruise company, Carnival Corporation, does not hedge fuel.

That leaves Carnival Corp. more vulnerable than its competitors to soaring fuel costs amid Mideast tensions.

As Reuters reported earlier this week, Carnival Corp.’s 2026 net income could take a US$145 million hit for even a 10% change in fuel cost per metric ton. Carnival Corp.’s many brands include Carnival, Costa, Cunard, Holland America, Seabourn and Princess. Carnival Corp. is expected to release its Q1 results on March 20. The company’s shares were down 7% last week.

Higher costs for cruise lines could very quickly translate into higher cruise fares. As reported by Caribbean News Digital, cruise line fuel surcharges could put a damper on these last weeks of Wave Season, plus cruise lines could also hike prices for onboard revenue generators including optional dining venues, shore excursions, beverage packages and more.

Cruise ships could also alter itineraries by opting for ports within shorter distances, and prioritizing slower cruising speeds, all to conserve fuel.