It's been fairly smooth sailing for (NYSE: CCL) (NYSE: CUK) stock since the start of 2023 -- it has gained close to 60% year to date. That improvement reflected the company's progress in many areas -- from paying down debt to announcing revenue growth and strong demand for its cruises. In its fiscal third quarter, the good news continued, with Carnival reporting its highest revenue ever.

But when that report came out on Sept. 29, Carnival shares didn't jump. In fact, over the past month, they've slipped by about 19%. In spite of the cruise company's improving situation, it faces one particular near-term challenge that could weigh on its recovery from tough pandemic times and its ability to grow. I'm talking about rising oil prices, which make it more costly to power cruise ships. Should investors be worried?

First a bit of background on Carnival's path so far. Beginning in March 2020, as the pandemic surged, cruise companies were forced to halt operations of their ships for many months, and this meant Carnival had to take on more and more debt to stay afloat. That extended shutdown meant this long profitable company shifted into loss territory.

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Source Fool.com