Reduced airfreight volume but high rates helped DHL achieve positive financial results

DHL air freight service (Image: DHL)

Deutsche Post DHL Group reduced air freight volume in the second quarter of 2022, but still achieved positive financial results thanks to market rates and high demand for charter flights.

The group's airfreight revenue in the second quarter of 2022 was 2.8 billion euros, up 40% compared to the second quarter of 2021, the number of tons of airfreight decreased by 7.7% compared to the same period in 2021 to 477,000 tons and gross profit from airfreight increased 67.4% year-on-year to 544 million euros.

Revenue and gross profit increased on the back of higher freight rates while cargo volumes were impacted by pandemic-related restrictions and the shift back to sea.

DHL said: “We registered a 2.5% decline in airfreight volumes in the first half of 2022, primarily on trade routes to and from China due to the lockdown in Shanghai during the second quarter. At the same time, freight rates remained at a very high level, resulting in revenue from airfreight exceeding the prior-year figure by 47.3%."

“[First half] gross profit improved by 68.6% due to the increasing demand for charter flights amongst other factors.”

Earnings before interest and tax (EBIT) of the global forwarding, freight (GFF) division in the second quarter of 2022 more than doubled year-on-year to 746 million euros compared to 312 million euros in the second quarter of 2021.

The division saw revenue increase 55.8% to 8.2 billion euros in the second quarter of 2021 due to “sustained price and margin dynamics”, DHL said.

Revenue of DHL's global freight forwarding division (Source: DHL | AirCargoNews)

DHL said: “Global Forwarding, Freight achieved an exceptionally large jump in revenue and ebit based on a dynamic price and margin development in the air and ocean freight business."

However, the company points out that: “Airfreight volumes decreased moderately, in part due to modal shifts back towards ocean freight products, as customers recognised the again improved schedule reliability in ocean freight.”

The courier division's EBIT fell slightly year-on-year at 1.1 billion euros, compared with 1.2 billion euros in the same period last year. DHL said results were affected by the temporary lockdown in China.

For the e-commerce solutions division, delivery volumes were down but the price adjustment resulted in an EBIT of just €109 million, down slightly from €116 million achieved in the second quarter of 2021.

Deutsche Post DHL Group says it achieved a record total EBIT of 2.3 billion euros in Q2 2022, compared with €2.1 billion in Q2 2021. The group increased revenue by 23.4% 24 billion euros over the same period last year.

Frank Appel, managing director of Deutsche Post DHL Group said: “Based on our strong international footprint coupled with the most modern infrastructure, we are able to offer reliable solutions in an increasingly complex environment across all sectors. We remain solid as a rock in uncertain times.”

DSV and Kuehne-Nagel both reported positive results for the second quarter of 2022, despite challenging market conditions.

Read more:

• Port of Felixstowe strike could increase demand for air freight
• Cargo shifting from air to sea as freight rates dropped and problems improved

Source: Phaata.com (According to AirCargoNews)

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