Carnival Corporation (CCL) shares surged 5.66% during intraday trading on Friday, joining a broader rally in the cruise and airline sectors as crude oil prices tumbled over 2%.

The decline in oil prices directly improves the fuel cost outlook for transportation companies, as fuel is a major operating expense for cruise operators. Carnival's peers, including Royal Caribbean and Norwegian Cruise Line, also advanced on the same cost-relief theme.

Adding to the positive sentiment, Truist Securities recently raised its price target on Carnival to $31 from $29, and the company's fiscal Q2 adjusted earnings per share of $0.41 beat the consensus estimate by 17%, with management noting that earlier booking headwinds are beginning to reverse.