Cruise operator Carnival reported second-quarter earnings held steady as soaring fuel costs offset strong revenue growth, but the higher fuel prices forced the company to lower its full-year forecast.

Carnival Vice Chairman Howard Frank called the second quarter ''a very, very difficult economic environment on both sides of the Atlantic.'' Still, booking trends are solid despite the economy, executives said.

''Our guests to some degree are tightening their belt,'' Carnival Chairman and Chief Executive Micky Arison told analysts on a conference call. ``But fortunately they continue to cruise and they continue to book at very acceptable levels.''

Carnival, which operates 11 brands and 87 ships, earned $390 million, or 49 cents a share, for the three months ending May 31, compared with $390 million, or 48 cents per share, a year ago. That was higher than the 41 cents a share analysts expected.

Revenue jumped 17 percent to $3.38 billion. But higher fuel prices cost the company $158 million, or 19 cents a share in the latest quarter.

Carnival paid $530 per metric ton to feed its fleet -- a 59 percent rise from last year.

In the face of the unprecedented fuel hikes, Carnival managed to contain other expenses through various steps, including holding down head count and restricting travel and special projects. With food costs rising, Carnival said instead of two lobster tails on ''lobster night,'' a ship may serve one lobster with shrimp.

Despite the downturn, executives said, people still want to take their vacations, although they are gravitating toward shorter cruises, instead of longer voyages. Once onboard, passengers are spending less at the art auctions, bars and casinos.

Fuel woes prompted Carnival to lower its 2008 per-share profit forecast to a range of $2.70 to $2.80, from its previous guidance of $3 to $3.20. The cruise operator expects to pay $752 million more for fuel in 2008 than the previous year.

To help offset the soaring costs, Carnival increased its fuel surcharge $2 per day to $9 for the first two passengers in a cabin and $4 for the third and fourth passengers. The new rates went into effect for bookings made after June 12. The cruise operator is making internal changes, too.

''We are looking at every possible opportunity to reduce our fuel consumption from an itinerary planning standpoint to conserving energy usage on the ships,'' said Frank.

For the first half of 2008, Carnival had $6.5 billion in revenue, compared to $5.6 billion a year earlier. But its profits slipped to $626 million, or 78 cents a share, from $673 million, or 83 cents a share, in the same period in 2007.

For the third quarter, Carnival said it expected earnings of $1.56 to $1.58 per share, down from $1.67 per share in the same quarter of 2007.

''Especially in a weakened economy, I would say the results look very good at this point,'' said Edward Jones analyst Robin Diedrich. ``The outlook for the rest of the year will be more challenging as fuel continues to go up.''

The Associated Press and Miami Herald business writer Martha Brannigan contributed to this report.

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