Carnival slashed its profit expectations for the year with rising fuel costs and a strong dollar squeezing the cruise company.
Shares slumped nearly 9 percent Tuesday after the pessimistic outlook overshadowed an otherwise strong first quarter.
Crude prices have jumped 30 percent this year and the cost for a barrel is now pushing $60.
Rising costs were exacerbated by the strong dollar because the company does so much business outside of the U.S. Foreign currency earned during the quarter must be converted to dollars, which diminishes company returns.
CEO Arnold Donald said fuel costs and currency issues will skim $155 million, or 22 cents per share, from the company’s overall profit in 2019.