DHL airfreight volumes plummet as the market “normalises”

Deutsche Post DHL Group observed a significant reduction in airfreight volumes in the first quarter of 2023, which it attributed to “normalisation of market conditions.”

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DHL airfreight volumes plummet as the market "normalises"

Airfreight volumes were 414,000 tonnes in the second quarter of 2023, down 18.7 percent year on year. According to the organisation, the fall in airfreight volumes was most visible on trade routes between Asia and the United States and Asia and Europe. In comparison, DSV’s airfreight volumes fell by about 20% in the first three months of the year. The company also claimed a return to normal market circumstances in its Global Forwarding and Freight (GFF) subsidiary. Airfreight revenue in the business was down nearly 40% year on year, reflecting the market’s reduction in demand and lower prices this year.

First-quarter airfreight revenues fell 39.6% year on year to €1.7 billion, while gross profit fell 29.9% to €342 million. Due to lower volumes and freight rates, overall income in the GFF segment fell by 25.5% to €5.5 billion. Overall, the Deutsche Post Group generated €20.9 billion in revenue in the first quarter, compared to €22.6 billion in the first quarter of 2022. As expected, the group stated that “the slowdown in global economic momentum was clearly noticeable in the first quarter.” “Deutsche Post DHL Group continued to develop as planned in the first quarter of 2023,” stated Tobias Meyer, Chief Executive Designate of Deutsche Post DHL Group. We foresaw the slowing of global growth momentum early on and were prepared to respond effectively. “Our measures are working, and we have maintained a high level of revenue and earnings.” This was made possible by our sustained profitability and cost management, as well as our well-balanced logistics services portfolio and international reach.”

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