DHL air volumes up 5% in second quarter

DHL reported a five percent increase in air freight volumes at 437,000 tonnes for the second quarter of 2024 but gross price declined to €561/unit from €711/unit.

Revenue increased four percent to €1.5 billion but gross profit was down 16.9 percent compared to the same period last year, says an official release

Revenue for the Global Forwarding, Freight division increased marginally in the second quarter to €4.9 billion and EBIT declined 28 percent to €279 million.

Revenue declined eight percent to €9.5 billion in the first half of 2024 due to lower freight rates, and EBIT was down 30 percent at €777 million. "Air freight volumes rose by 5.2 percent in the first half of 2024, with growth primarily on trade lanes between Asia and Europe."

Melanie Kreis, CFO, DHL Group says: "Air and ocean freight volumes further improved in the second quarter from a low starting level. However, we are not observing a broad-based recovery of global trade yet. We are also seeing a modest improvement in B2B volumes at Express but not yet a significant acceleration. Accordingly, the utilisation of our Express network is still not optimal at the moment. However, as a result of our balanced cost and capacity management, we are in good shape even in a weak economic environment. And thanks to our unique logistics portfolio we are well prepared for when global trade regains momentum."

Q2 Group revenue up 3%
DHL reported a three percent increase in revenue at €20.6 billion but EBIT was down 20 percent at €1.4 billion for the second quarter of 2024.

"At €40.9 billion, Group revenue in the first half of 2024 almost reached the previous year’s level of €41 billion. Negative currency effects reduced it by €137 million. The proportion of revenue generated abroad changed from 74.7 percent to 74 percent."

Express's overall shipment volumes declined somewhat, as expected, in the second quarter although B2B shipment volumes increased slightly. The division addressed the weak economic environment with productivity improvements, network optimisation, and ongoing yield and cost management. Despite low network utilisation, the division recorded a double-digit EBIT margin.”

Revenue was up marginally at €6.2 billion with EBIT decline of 24 percent at €683 million.

"The Supply Chain division continued to benefit from the growth trends in e-commerce and omnishoring. New business, contract renewals, and expanding e-commerce contributed to higher revenue in almost all regions and sectors."

Revenue for the second quarter increased three percent to €4.4 billion and EBIT was also up three percent at €279 million.

"The eCommerce division's revenue and volume growth continues as the structural e-commerce trend is more than offsetting reticent consumer spending. EBIT development in the second quarter particularly reflected ongoing investments to expand networks and improve service quality."

While revenue increased 11 percent to €1.7 billion, EBIT was down 14 percent at €67 million.

DHL confirms outlook
DHL has maintained its outlook of operating profit to be €6-6.6 billion for 2024.

In its medium-term forecast for 2026, DHL Group continues to expect an operating profit of between €7.5-8.5 billion.