MIAMI (Bloomberg) — Carnival Corp., the world's biggest cruise-line company, reported third-quarter profit that fell less than analysts estimated and said advance reservations for the rest of this year and into 2009 slowed.

Net income declined 3.2 percent to $1.33 billion, or $1.65 a share, as higher fuel bills eroded the benefits of increased ticket prices and new European ships. Revenue climbed 11 percent to $4.81 billion, the owner of the Princess line said yesterday. Carnival said it would earn more than it previously forecast for the year through November because of lower fuel costs.

Chief operating officer Howard Frank said cruising has shown some resiliency because it offers value to consumers struggling with declining home values and job losses. Advance bookings based on higher ticket prices are "slightly behind" the prior year, Carnival said. The industry may be hurt if the economy worsens from "turmoil" in financial markets, he said.

The company's "incrementally more cautious comments regarding 2009 first-half bookings and relative pricing will likely give investors ongoing pause," Tim Conder, an analyst at Wachovia Corp. in St. Louis, wrote today in a research note. He recommends investors buy Carnival shares.

Carnival, based in Miami, rose 11 cents to $39.04 at 3 p.m. in New York Stock Exchange composite trading. Earlier the shares dropped as much as 4.6 percent. They had fallen 12 percent this year before today.

The cruise-ship company said in a statement that it expects profit of $2.79 to $2.81 a share, up from $2.70 to $2.80, as fuel expenses for the year through November are lower than previously anticipated. Analysts surveyed by Bloomberg predict $2.74, on average.

Carnival also forecast fourth-quarter earnings to decline to 36 cents to 38 cents a share, hurt by the advance of the dollar.