DP DHL: More work to be done on airfreight despite volume improvement

Deutsche Post DHL (DP DHL) has said there is more work to be done for its airfreight business despite the segment recording its first improvement in demand since the first quarter of last year.
Speaking on an investor call shortly after the company’s third quarter results were announced, DP DHL chief executive Frank Appel said its forwarding division’s airfreight business still “had some work to do” after volumes increased but gross profits declined.
While air cargo volumes during the quarter increased by 2% year on year to 520,000 tonnes, revenues declined by 8.8% to €1bn and gross profits slipped by 5.2% to €220m.
The company said that gross profits had been affected by early peak season price increases and Appel added that the market was “not very supportive” and he would like to see the airfreight division gain more small and mid-sized companies to help solve the problem.
Meanwhile, Appel said that from his perspective this would be one of the challenges for incoming forwarding chief executive Tim Scharwath, although he had added that the two had not yet had the chance to discuss strategic priorities because he was still on the payroll of rival Kuhne+Nagel where he heads up the airfreight business.
Other priorities for Scharwath could be optimising costs and helping with the implementation of a new IT system, which will be helped by his IT background, Appel said.