Oil & Troubles: A Couple of Travel Stocks in a Pickle

Now, I’ve seen a good many things rattle the markets in my time – panics, booms, and enough foolish speculation to fill the Mississippi. But this latest kerfuffle over in Iran… well, it’s stirred up a hornet’s nest, it has. Folks are jumpy, and rightly so, and the price of oil‘s been climbing faster than a politician’s promises. It’s a sight to behold, and a reminder that the world’s a complicated contraption, prone to fits and starts.

Oil, you see, is the lifeblood of a good many ventures, and when that blood gets expensive, things tend to ail. Shipping’s been having a grand time of it, what with routes getting rerouted and rates going sky-high. But there’s always someone who benefits from misfortune, ain’t there? The real trouble, though, falls on them that depend on cheap fuel – and that includes a good many folks who fancy a holiday.

The Orient, bless their industrious hearts, are feeling it something fierce. Korea and Japan, they’re mighty reliant on oil coming from that part of the world, and when the tap starts to tighten, they feel the pinch. But let me tell you, it’s the travel business that’s really starting to feel the heat. Fuel’s a hefty chunk of their expenses, and when you throw in a bit of geopolitical unrest – well, folks get nervous about booking a trip to places where the cannons are booming. Heard tell of folks in Dubai struggling to find a way out, which is a fine kettle of fish, I reckon.

So, let’s have a look at a couple of travel stocks that are taking a bit of a beating. It ain’t pretty, but a shrewd trader can always find an opportunity in a bit of chaos.

1. Carnival

Now, Carnival (CCL 4.18%) is the biggest name in cruising, and that means they’ve got the most to lose when things go sideways. They operate a few sailings out of Dubai, but they wisely decided to cut that season short when the trouble started brewing. Also, cancelled a few port calls in Mexico, which is a bit of a nuisance, I suppose.

The stock’s down a good 15% since last Friday, and that’s no surprise. They’ve had a bit of a comeback since the pandemic, mind you, but cruise lines are always vulnerable to things like wars and hurricanes. It’s a risky business, relying on calm seas and peaceful shores. They haven’t said much about the war yet, but we’ll likely hear more in their earnings report on March 19th. Most of their cruises are in the Caribbean, so they won’t be directly affected, but that rising oil price… that’ll put a dent in their profits, sure as sunrise. Fuel usually accounts for 10-15% of their revenue, a considerable sum, wouldn’t you agree?

2. American Airlines

Like them cruise lines, American Airlines (AAL 6.70%) is feeling the pinch of this oil price surge. And those flying to places like Dubai are having to cancel flights, which is a bother for everyone involved. Their stock is down 11% since last Friday, and they were already struggling before this whole mess started. Profits fell a whopping 87% in 2025, and their flight attendants and pilots are losing faith in management – a sorry state of affairs, indeed.

That rising fuel price is likely to eat further into their profits, and they’ve suspended flights to Dubai for the time being, though that might just be temporary. Fuel and taxes accounted for nearly 20% of their revenue in 2025, a hefty slice of the pie. So, keep a close eye on that oil price, because that’s likely to tell you where American Airlines – and its competitors – are headed from here. It’s a simple equation, really: expensive fuel means expensive tickets, and that doesn’t sit well with travelers.

2026-03-05 22:32

1. Carnival

2. American Airlines

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