04/05/2026
MUST READ If you have a cruise booked, there’s a new line item you may want to watch for: a fuel surcharge. With oil prices climbing sharply since the start of the Iran conflict in late February, cruise passengers are asking whether the major lines will start passing those costs along. What’s driving the concern
Since the Iran conflict began on February 28, global oil prices have jumped more than 40%, with Brent crude topping $100 per barrel amid disruptions in the Strait of Hormuz, according to reporting by MarketWatch. That’s well above the trigger thresholds written into most cruise contracts.
Cruise fuel costs are significant. Carnival Corporation spent more than $1.8 billion on fuel in 2025 alone, and Royal Caribbean Group spent roughly $1.1 billion.
Due to recent geopolitical developments in the Middle East, oil prices have increased significantly, leading to higher fuel and related costs,” the companies said in letters to passengers.
Closer to home, one U.S. cruise line is already charging passengers a fuel surcharge and has been for nearly two years. Margaritaville at Sea has collecteda $15 per person per night fuel supplement on sailings aboard the Paradise since June 2024. The fee does not apply to the line’s newer ship, the Islander, which launched from Tampa in 2024.
What the major lines say now
For now, the three biggest cruise companies are holding the line. Norwegian Cruise Line said it does not expect “any immediate impact on ticket prices or the guest experience.” Carnival said it has “no plans to change our current pricing model.” Royal Caribbean did not respond to requests for comment from MarketWatch.
But the fine print in cruise contracts tells a different story. Norwegian reserves the right to impose a surcharge of up to $10 per passenger per day with no prior notice if West Texas Intermediate crude tops $65 a barrel.
Carnival’s contract allows up to $9 per person per day above a $70-per-barrel threshold. Oil is currently trading well above both levels. MSC Cruises has a cap as high as $12 per person per day under similar conditions.
Crucially, these surcharges can be applied even after a cruise has been paid in full.
The math adds up fast. A family of four on a seven-night sailing could see an extra $252 added to their bill under Carnival’s contract terms, or $280 under Norwegian’s policy, if either line chose to act.
Fuel Purchasing Strategies
Not all cruise lines are equally exposed to rising oil prices.
Royal Caribbean has hedged roughly 60% of its fuel needs for 2026, giving it a financial buffer against the current spike and helping explain why the line has said it will not impose surcharges.
Norwegian Cruise Line also uses fuel hedging strategies to lock in costs in advance.
Carnival Corporation is a different story. The company does not hedge fuel purchases at all, making it the most directly exposed of the three major cruise groups to oil price swings.
That vulnerability is already showing up on Carnival’s bottom line. When the company reported first quarter results, it cut its full-year earnings guidance, absorbing more than $500 million in adverse fuel cost impacts compared to earlier projections.
Maritime attorney Michael Winkleman, told MarketWatch that cruise contracts are written to give lines flexibility. The cruise contract is a powerful document entirely in favor of the cruise lines,” he said.
The last time cruise passengers actually paid fuel surcharges on a widespread basis was nearly 18 years ago, during the 2007-2008 oil price spike that pushed crude above $100 a barrel. Since then, even when oil spiked sharply in 2022, the big lines held off.
