Rising fuel prices have seen profits at Carnival Corporation fall by 13 per cent year-on-year, prompting a dip in share prices.

For the quarter ended February 28th, Carnival reported net income of $152 million, or 19 cents per share, down from $175 million, or 22 cents per share, a year ago.

This was in line with Wall Street expectations, with Carnival able to cut other costs to accommodate rising fuel prices.

Carnival – which operates the Holland America Line, Princess Cruises, Carnival Cruise Lines and Costa Cruises – saw its stock drop $1.02, or 2.5 per cent, to $39.99 in early trading.

Revenue climbed 8 per cent to $3.42 billion from $3.18 billion on higher ticket prices and passengers spending more on board its ships.

Carnival now predicts full-year earnings of $2.55 to $2.65 per share. It previously anticipated earnings of $2.90 to $3.10 per share.

Chief executive Micky Arison said: “The convenience and affordability of a cruise vacation continues to gain recognition as consumers discover the unrivalled experience cruising offers.