NEW YORK -- Lower fuel prices, cost-cutting and other one-time benefits helped cruise operator Carnival (CCL) raise its profit 10 percent in its fiscal first quarter, exceeding Wall Street's expectations, the company reported Tuesday.

Carnival has maintained strong booking volumes by slashing cruise prices.

The Miami-based company lowered its forecast for fiscal 2009 earnings, however, in part because prices have remained weak for cruises booked for the second half of this year.

''Given the significant slowdown in the global economy, I think it is fair to say that this has been one of the most challenging booking environments we have ever experienced,'' said Vice Chairman and Chief Operating Officer Howard Frank during a conference call with investors.

For the quarter that ended Feb. 28, earnings grew to $260 million, up from $236 million a year ago.

Carnival said its revenue fell 9 percent to $2.86 billion, from $3.15 billion in the first fiscal quarter of 2008.

The cruise line has achieved a 10 percent year-over-year increase in bookings but was forced to slash prices to ''levels not seen in recent years,'' Frank said.

''It was strong volumes against very lousy rates,'' Chairman and Chief Executive Micky Arison added.

Bookings for the most expensive cruises, particularly those to remote regions of Alaska, have fallen further than less expensive Caribbean jaunts. The company also noted that it plans to reduce its capacity for cruises to Alaska in 2010.

Carnival said budget-conscious vacationers also cut spending on gambling, shore excursions, shopping and photos during their cruises, although they continued to spend on spas and drinks.

On the other side of the balance sheet, a 45 percent drop in fuel prices saved the cruise line 21 cents per share. The improved results also included two one-time gains totaling $32 million.

One was from cutting an income tax reserve that was no longer needed and the other from terminating a lease-out and lease-back deal involving troubled insurer American International Group Inc.

Carnival also held down controllable costs through measures like renegotiating with its vendors, reducing its fuel consumption and cutting back on some projects.

''Carnival's revised guidance highlights the difficult pricing environment the industry currently faces,'' said Barclays Capital analyst Felicia Hendrix in a note to investors.

Carnival now expects 2009 earnings to range from $2.10 to $2.30 per share, down from its previous guidance range of $2.25 to $2.75 per share.

Carnival shares closed at $22.64, down 67 cents.