Shares in Norwegian Cruise Line Holdings sank on Friday 23 October 2026 after J.P. Morgan downgraded its stock from Neutral to Underweight. NCLH stocks are down about 34% year on year, as the cruise conglomerate struggles under the weight of rising fuel costs and a reduction in pressure on its booked position.
Analysts have expressed concerns that NCLH will continue to be weighed down by rising fuel costs, which onboard revenue spend can only partially make up. They also believe that NCLH’s high US passenger base may continue to challenge the line’s booked position on its 2027 European offerings.
NCLH is scheduled to release its third-quarter earnings before markets open on 29 October. J.P. Morgan analysts downgraded NCLH’s stock price expectation from $15 to $11 a share.
NCLH is not alone in this: both Carnival Corporation and Royal Caribbean Group shares were down in trading on Friday, as the upward trend in oil futures shows no sign of subsiding. Oil prices topped $117 a barrel on Friday, as Tehran warned it would consider attacking oil infrastructure in the Gulf.
For cruise lines, the ongoing uncertainty in the Middle East is dramatically affecting their ability to remain profitable and meet Wall Street expectations. As oil creeps steadily higher, the question becomes not whether but when cruise lines will look to offset rising expenditures – and at what point consumers will start to look elsewhere for their holiday.
