LAS VEGAS » Casino operator Boyd Gaming Corp. says it returned to a first-quarter profit as cost cuts helped offset a drop in gambling revenue, and the company forecasted growth in the second half of the year.

Consumers have tightened their discretionary spending during the economic downturn, Boyd said. While conditions appear to be improving, spending on nonessentials and leisure activities is still only slowly increasing.

However, Vacations Hawaii, the Boyd subsidiary that runs charter flights five days a week to Las Vegas from Honolulu, continued to slump as its revenue fell 14.9 percent during the quarter to $7.4 million from $8.7 million in the year-earlier period.

In 2009, Vacation's Hawaii revenue fell 24.4 percent to $32.3 million from $42.7 million.

Boyd Chief Operating Officer Paul Chakmak attributed the decline in business from Hawaii customers yesterday to “;the economic difficulties catching up with the Hawaii economy.”;

“;The Hawaii government-mandated furloughs have negatively impacted discretionary spending and visitation for many of our customers,”; Chakmak said. “;On the positive side, we are beginning to see improvement in the Hawaii economy in both the retail and tourism segments.”;

Overall, Boyd reported net income of $8.4 million, or 10 cents a share, compared with a loss of $13.8 million, or 16 cents a share, a year earlier.

Revenue fell 5 percent to $415.1 million from $434.8 million as a decline in gaming revenue offset an uptick in food and beverage and room revenue.