MIAMI (AP) — Carnival Corp.'s third-quarter net income climbed 22 percent as better demand fuelled rising prices during the busy summer season.

The company also raised its full-year earnings forecast well above Wall Street's expectations on Tuesday, sending its shares up $1.68, or 4.5 percent, to $38.74 in morning trading.

The owner of Princess, Holland America and its namesake cruise lines earned $1.3 billion, or $1.62 per share, for the period ended August 31. That's up from $1.07 billion, or $1.33 per share, in the same period last year.

The performance easily surpassed the $1.47 per share predicted by analysts polled by Thomson Reuters.

Strong ticket prices and healthy demand during the traditionally strong summer season helped quarterly results, according to Chairman and CEO Micky Arison.

Revenue increased seven percent to $4.43 billion, meeting Wall Street's expectations. It was the third consecutive quarterly increase. Fuel prices rose 17 percent to $473 per metric ton, but they still came in lower than the $493 per metric ton that Carnival forecast in June.

The company, based in Miami, now expects 2010 net income of $2.48 to $2.52 per share, up from a prior guidance of $2.25 to $2.35 per share. Analysts anticipate $2.36 per share for the year.

Carnival said booking volumes for the rest of 2010 and the first half of 2011 are ahead of 2009 at prices similar to a year ago.

"Consumers continue to embrace vacations as a much-needed escape from the rigours of daily life, while cruising remains an increasingly attractive option for those seeking greater value for their vacation dollar," Arison said.

While consumers are still taking vacations during ongoing economic uncertainty, many have opted to take shorter trips or selected less expensive locations, such as the Caribbean, in an attempt to save some cash. In the fourth quarter, Carnival foresees earnings between 32 cents and 36 cents per share. This is in range of the 36 cents-per-share estimate of analysts.

Carnival has 97 ships, with 11 new vessels expected to be delivered by May 2014.