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The cruise industry has experienced a slowdown in business as a result of growing concerns of a potential recession in Europe. Yet some investment analysts remain keen on the industry as falling fuel prices could help significantly boost companies' profits this year.

Investment bank Jefferies has "buy" ratings on both Carnival Corp. and Royal Caribbean Cruises Ltd. Operators' profits could rise by as much as 25 percent as a result of low prices for bunker fuel, analysts at Jeffries said in a recent note.

Growing concerns of a potential recession in Europe, which accounts for roughly 20 percent of the world's consumption of oil, has seen oil prices slide to eight-month lows on Tuesday. Since early May oil prices have fallen nearly 24 percent on fears that the global economy is slowing.

According to market research firm Five Star Equities, sliding oil prices likely saw Carnival's average fuel costs for this quarter drop to approximately $735 per tonne. The cruise line had expected to pay $772 per tonne when it calculated its second-quarter earnings guidance. Jefferies analysts stated that the lower fuel costs would increase Carnival's 2012 per-share earnings by around 25 percent.

Royal Caribbean Cruises Ltd. is the world's second largest cruise company, operating the Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises and CDF Croisieres de France brands. The company reported improved revenues to $1.8 billion in the first quarter of 2012 compared to $1.7 billion in the first quarter of 2011 as a result of capacity increases and yield improvements.