Tag: Viking Line | Ferry Shipping News

Nearly 1.8 million passengers travelled on Viking Line’s vessels during the period June–August 2024. The greatest increase in demand was on the Tallinn route, which also had more departures than in previous summer seasons. This summer, passengers were drawn by the variety of attractions in Estonia and the other Baltic countries, to Åland as depicted in the historical film Stormskärs Maja, and by a refurbished Viking Cinderella. 

 In short: 

• Viking Line served nearly 1.8 million passengers during June–August 2024. 

• The Tallinn route saw the greatest increase in demand, with over 732,000 passengers and a rise of more than 11%. 

• The Helsinki–Stockholm route carried 274,000 passengers, with Viking Line’s market share rising to 44%. 

• A cheap Swedish krona increased Stockholm’s appeal as a destination. 

• Special cruises to Visby, Gotland were highly popular and sold out quickly. 

• The Turku–Mariehamn–Stockholm route served 747,000 passengers, maintaining Viking Line’s market share at nearly 70%. 

• International tourist numbers rose significantly, with notable increases in Chinese, German, Polish, South Korean, and American passengers. 

• Climate tourism, driven by people seeking cooler destinations, is on the rise. 

• The abrupt end of the summer season is a challenge for the tourism industry due to earlier school start dates in Finland. 

 Read the full story on Vikingline.com 

January–December 2023 (2022)

• Sales amounted to EUR 491.4 million (EUR 494.7 million).
• Other operating revenue was EUR 9.1 million (EUR 24.1 million).
• Operating income totalled EUR 55.0 million (EUR 38.3 million).
• Net financial items were EUR -9.6 million (EUR -10.3 million).
• Income before taxes totalled EUR 45.4 million (EUR 28.0 million).
• Income after taxes totalled EUR 36.3 million (EUR 22.7 million).
• The Board of Directors proposes a dividend of 1 euro per share, which corresponds to 48% of earnings.

Outlook for the financial year 2024

There continues to be significant uncertainty due to the geopolitical situation and the impact this has on energy prices, inflation, interest rates and currencies as well as the effects these uncertainty factors may have on people’s propensity to travel, demand, consumption patterns and costs.

Provided energy prices remain at current levels and there is a sustained propensity to travel, the Board expects income before taxes in 2024 to be on a par with the figure for 2023 if the EUR 8.6 million capital gain from the sale of ROSELLA in 2023 is not included.

Q4, 2023

• Sales amounted to EUR 112.2 million (EUR 124.5 million).
• Other operating revenue was EUR 0.3 million (EUR 15.2 million).
• Operating income totalled EUR 2.7 million (EUR 19.4 million).
• Net financial items were EUR -0.6 million (EUR -2.9 million).
• Income before taxes amounted to EUR 2.0 million (EUR 16.5 million including the EUR 15.0 million capital gain from AMORELLA).
• Income after taxes totalled EUR 1.7 million (EUR 13.2 million).

Full details here.

January-September 2023 

• Sales amounted to MEUR 379.2 (370.2).
• Other operating revenue was MEUR 8.9 (8.8).
• Operating income totalled MEUR 52.4 (18.9).
• Net financial items were MEUR -9.0 (-7.5).
• Income before taxes totalled MEUR 43.4 (11.4).
• Income after taxes totalled MEUR 34.6 (9.5).

Outlook

Unchanged compared to the Half-Year Report as of June 30, 2023, which means that income before taxes is expected to be significantly better than last year provided that energy prices remain at current levels.

Q3, 2023

• Sales amounted to MEUR 152.9 (170.4).
• Other operating revenue was MEUR 0.0 (0.5).
• Operating income totalled MEUR 35.3 (26.9).
• Net financial items were MEUR -1.1 (-2.8).
• Income before taxes totalled MEUR 34.2 (24.1).
• Income after taxes totalled MEUR 27.6 (19.3).

Summary of the comments by CEO Jan Hanses

1. Third Quarter Results:
   • Results for the third quarter exceeded expectations.
   • Passenger and cargo volumes continued to rise, despite having fewer vessels in operation.
   • Planned sales prices were achieved.
   • Bunker (vessel oil) prices have fallen gradually but remain high compared to pre-pandemic levels and due to Russia’s war of aggression against Ukraine.
2. Joint Venture and Vessel Acquisition:
   • On August 9, Viking Line and Gotlandsbolaget announced the formation of a joint venture to develop and provide cruises using the former M/S Birka Stockholm.
   • Viking Line acquired 50% of the vessel for MEUR 19 million.
   • The joint venture received approval from the Swedish Competition Authority on August 23.
3. EU Emissions Trading System:
   • Starting in 2024, Viking Line’s traffic will be subject to the EU Emissions Trading System.
   • This will impose costs that can only be partially adjusted in the medium term through energy efficiency efforts.
   • The availability and cost of fossil-free fuels are not economically viable at the moment.
   • The company intends to use cost savings from the island exemption (for service between Finland and Åland) to continue transitioning to fossil-free fuels and improving energy efficiency.
4. Summer Passenger Demand:
   • During the summer months of June to August, nearly 1.8 million passengers sailed with Viking Line’s vessels.
   • Many departures during the holiday season were sold out well in advance.
   • Strong demand is attributed to local tourism, recovery in international tourism for the Nordic region, and the appeal of the company’s vessels.
5. Nine-Month Passenger Numbers:
   • Over the first nine months of the year, 3.8 million passengers sailed on Viking Line’s vessels.
   • Occupancy rates have been good on all vessels.
6. Market Share:
   • On the route between Turku, Åland, and Stockholm, VIKING GRACE and VIKING GLORY experienced intense travel.
   • The market share for the first nine months was over 73%.
7. Overall Performance:
   • The report period was very strong, even without considering the income effect of the sale of ROSELLA.
   • Acknowledgment and thanks were extended to customers, partners, and staff for their contributions to the company’s good results.

Summary of key events and information during the first 9 months of 2023

1. Vessel Operations:
2. • For most of this period, Viking Line operated with two fewer vessels compared to 2022, specifically the AMORELLA and ROSELLA.
3. VIKING GRACE Dry Docking:
   • VIKING GRACE was dry-docked from January 16 to February 12, during which it was replaced by VIKING CINDERELLA on the Turku-Mariehamn/Långnäs-Stockholm route.
   • VIKING CINDERELLA later resumed its regular day cruise service between Stockholm and Mariehamn.
4. ROSELLA:
   • ROSELLA operated between Mariehamn and Kapellskär until January 8 when it was taken out of service.
5. VIKING XPRS:
   • VIKING XPRS was temporarily out of service for three days in connection with its delisting from Estonia’s register of bareboat charterers and its entry into the Åland Register of Ships on March 6.
   • As of March 6, VIKING XPRS sails under the Finnish flag.
6. Summer Destination Cruises:
   • During the summer period, both GABRIELLA and VIKING CINDERELLA conducted various destination cruises to places like Visby, Sweden’s High Coast, Bornholm, and Åland.
7. CINDERELLA and GABRIELLA Tandem Service:
   • From June 29 to August 6, CINDERELLA and GABRIELLA served in tandem on the Helsinki-Mariehamn-Stockholm route with stopovers in Tallinn.
   • On August 7, CINDERELLA returned to its regular day cruise service between Stockholm and Mariehamn.
8. VIKING GLORY:
   • VIKING GLORY was launched into service on the Turku-Mariehamn/Långnäs-Stockholm route on March 1, 2022.
   • VIKING GRACE served this route alongside VIKING GLORY.
   • AMORELLA ceased operating on this route on February 28, 2022.
   • Both VIKING GLORY and VIKING GRACE were taken out of service for planned work in September 2023.
9. Passenger and Cargo Statistics:
   • The total number of passengers on the Group’s vessels during this period was 3,818,810.
   • The Group had a total market share in its service area of approximately 35.2%.
   • Market demand for travel has been significantly higher compared to the same period last year, partly due to the reduction in pandemic restrictions.
10. Cargo Volume:
    • The Group’s total cargo volume for the period was 93,565 cargo units.
    • The Group’s share of the cargo market was approximately 16.7%.
    • Demand for cargo in the service area decreased during the third quarter of 2023 compared to the same period last year, likely due to economic uncertainty in the region. However, the number of cargo units transported increased.
11. Passenger Cars:
    • The market share for passenger cars was approximately 29.0%, which is a decrease compared to the previous year (32.9%).
    • This decrease can be attributed, in part, to the termination of the short-haul Kapellskär-Mariehamn route.

• Between June and August, nearly 1.8 million passengers sailed on Viking Line’s vessels.
• Many departures during the summer holiday season were sold out well in advance (new trend).
• Several reasons for the strong demand were local tourism, which was popular in both Finland and Sweden, and the recovery in international tourism in the Nordic region.
• Viking Line’s passenger figures for the summer months increased most on the Tallinn route (+8.7%) (June-August 656,401 passengers).
• The company had prepared for the summer holiday season by doubling capacity on its Tallinn departures during the peak of summer, and for six weeks three of the company’s vessels sailed across the Gulf of Finland: VIKING XPRS, VIKING CINDERELLA and GABRIELLA.
• The cheap Swedish krona drew visitors to Stockholm.
• +8.1% Turku-Stockholm (801,919 passengers June-August) partially driven by new vessel VIKING GLORY.
• South Koreans a new passenger category: largest increase among international passengers this past summer. South Koreans take group trips and want to visit as many countries as possible on their trip.

All routes combined: 1,786,499 passengers, 227,064 cars

• Turku–Mariehamn–Stockholm 801,919 passengers
• Helsinki–Mariehamn–Stockholm 218,752 passengers
• Helsinki–Tallinn 656,401 passengers
• Stockholm–Mariehamn (no service June 30–August 6, 2023) 109,427 passengers