Royal Caribbean faces rising fuel costs near $100/barrel despite strong bookings and earnings growth.

Royal Caribbean Group is entering 2026 with strong momentum, including record bookings and a projected $18 adjusted EPS. However, rising oil prices nearing $100 a barrel pose a significant risk, as fuel costs have surged 46% in a month, threatening profit margins. The company plans $5 billion in capital expenditures this year and has refinanced debt to reduce near-term maturities. While analyst sentiment remains mostly bullish with a $348 price target, concerns about fuel expenses and geopolitical disruptions could pressure dividends and buybacks in the coming quarters.