Carnival Reports 32 Percent Drop In 2Q Profit

The company said it started some conservation programs that helped reduce fuel consumption during the period. That includes route changes and upgrades to ships — like new technology and silicon-painted hulls — that improve fuel efficiency.

Besides fuel, Carnival Chief Financial Officer David Bernstein said the company found $33 million in additional cost-savings, bringing total savings to $150 million since December. In an interview, spokesman Tim Gallagher noted that Carnival's cruise lines were specifically instructed not to cut guest services or products.

The impact of swine flu lowered earnings by about 3 cents per share during the second-quarter. Carnival expects to take an additional 7-cent charge in the third quarter for a total of 10 cents per share this fiscal year.

For the second half of 2009, Carnival said its booking levels remain slightly behind last year, although booking volumes have picked up significantly. Ticket prices, while improving, remain at "substantially lower levels."

"As we have progressed throughout the year, booking volumes have continued to accelerate with less discounting, as consumers have come to recognize the extraordinary value proposition our cruise vacations represent," Arison said.

"Overall by the time the quarter closes, we expect fourth-quarter pricing to be lower year-over-year but improving on the third-quarter's expected price declines," said Vice Chairman and Chief Operating Officer Howard Frank said during the call.