Viking Cruises Sails Into Q1 2025 With Strong Advance Bookings and Capacity Growth

Viking Holdings Ltd (NYSE: VIK) is preparing to discuss its first-quarter 2025 results, and the early indicators are promising. With record-breaking demand, a growing fleet, and a robust balance sheet, Viking appears positioned to capitalize on the cruise industry’s rebound. Here’s why investors should pay attention.

A Strong Start to 2025: Demand Surges Ahead of Earnings

The company’s advance bookings for the 2025 season have already hit $5.306 billion—a 26% year-over-year increase—with 88% of Capacity Passenger Cruise Days (PCDs) sold across its river, ocean, expedition, and Mississippi divisions. This figure is a clear sign of pent-up demand for travel, particularly in premium cruise segments.

The $807 average price per PCD—up 7% from 2024—suggests strong pricing power, a critical factor for margins. January 2025 was a record month, with $123 million booked in a single day (January 31) and overall revenue hitting an all-time high. These trends bode well for Q1 results, which will likely reflect this momentum.

Capacity Growth Fuels Future Expansion

Viking is aggressively expanding its fleet, with a 12% increase in 2025 operating capacity compared to 2024. Eleven new ships—1 ocean vessel and 10 river ships—are set to join the fleet this year, bolstering its ability to meet demand. The company also announced future vessel orders, signaling confidence in long-term growth.

This expansion aligns with its "one Viking brand" strategy, which integrates its river, ocean, and expedition offerings under a unified experience. The strategy has paid off: Condé Nast Traveler and Travel + Leisure recently ranked Viking as #1 in rivers, oceans, and expeditions, reinforcing its premium positioning.

Financial Health: Cash, Credit, and Confidence

Viking’s balance sheet remains a standout feature. As of December 31, 2024, it held $2.5 billion in cash and equivalents, with an undrawn $375 million credit facility. A recent Moody’s upgrade to Ba3 reflects improved creditworthiness, reducing borrowing costs and supporting capital expenditures.

The 2024 full-year revenue of $5.33 billion—up 13.2%—was driven by 92.1% occupancy and a 7.4% net yield increase in Q4. These metrics suggest that the company’s focus on loyalty programs and targeted marketing is resonating with customers.

What to Watch for in the Earnings Call

Investors should monitor several key figures during the May 20 earnings call:
- Revenue and Adjusted EBITDA: Will the Q1 results meet or exceed the 2024 growth trajectory?
- Vessel Deliveries: Progress on the 11 new ships and how they’ll impact 2025 capacity utilization.
- Margin Trends: Can the 7% yield increase be sustained as new ships come online?

Conclusion: Viking’s Momentum Points to a Smooth Voyage Ahead

Viking’s Q1 2025 performance appears to be a continuation of its post-pandemic resurgence. With 26% higher advance bookings, a 12% capacity expansion, and a $2.5B cash cushion, the company is well-positioned to grow revenue and margins in 2025.

The record $5.3 billion in advance bookings and its #1 rankings across cruise categories underscore its brand strength. Meanwhile, the 7% yield increase and 13.2% 2024 revenue growth provide a solid baseline for expectations.

For investors, Viking’s combination of premium demand, strategic fleet growth, and financial discipline makes it a compelling play on the cruise recovery. If the earnings call confirms these trends, VIK could continue its ascent in 2025.