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Kuehne+Nagel registered an increase in airfreight volumes last year despite “challenging market conditions” but operating profits for the division came under pressure.
The world’s largest airfreight forwarder reported a 4.1% year-on-year increase in air revenues last year to Sfr7.8bn, while volumes increased by 5.5% to 2.1m tons but air earnings before interest and tax (EBIT) declined by 13.9% to Sfr478m.
"In 2024, the market was characterised by highly volatile demand for air transport services whereby the market has turned towards strong demand for export capacities out of China from e-commerce customers," the forwarder said.
The company explained that the profit decline related to lower airfreight rates, which decreased by 1.1% to Sfr372 per 100 kg.
Volumes improved on the back of perishable demand and its Apex Logistics business. Yields in aerospace and pharma/healthcare were better than other parts of the business.
However, profit performance in air improved as the year progressed - reflecting the wider market - and in the fourth quarter EBIT was up 17.5% on a year earlier to Sfr148m. Fourth quarter air volumes increased by 4.7% to 558,000 tons and air revenues were up 9.4% to Sfr2.2bn.
Meanwhile, the overall company saw net revenues improve by 4% to Sfr24.8bn, EBIT was down 13% to Sfr1.6bn and earnings were down 16% to Sfr1.2bn.
The company said that profits at existing clients had come under pressure while exchange rates had also had a negative impact on performance.
However, it pointed out that performance was still better than pre-Covid levels.
Kuehne+Nagel international chief executive Stefan Paul said: "The streamlining of Kuehne+Nagel's organisational and sales structure in April 2024 already yielded visible successes in the second half of the year.
"In addition, we enabled new growth opportunities through acquisitions in North America and Asia. In short, we have created a more efficient organisation with a broader offering to achieve our future ambitions."
Joerg Wolle, chairman of the board of directors, added: “Kuehne+Nagel looks back at a successful financial year 2024. We achieved the positive results despite extensive strains on the global economy and despite geopolitical events.
"In these challenging times, Kuehne+Nagel once again proved to be a reliable strategic partner, supporting its customers with sophisticated logistics solutions."
