Kuehne+Nagel, airfreight forwarder, reported a 5.5% year-on-year increase in airfreight volumes in 2024, reaching 2.1 million tons.
However, operating profits for the division came under pressure due to declining airfreight rates.
The company’s airfreight revenues rose 4.1% to Sfr7.8bn, while air earnings before interest and tax (EBIT) declined by 13.9% to Sfr478m.
Kuehne+Nagel attributed the profit decline to lower airfreight rates, which fell 1.1% to Sfr372 per 100 kg.
“In 2024, the market was characterised by highly volatile demand for air transport services, with a surge in export demand from China, particularly driven by e-commerce customers,” the company stated.
Despite challenges, Kuehne+Nagel saw strong performance in the perishable, aerospace, and pharma/healthcare sectors, with its Apex Logistics business contributing to volume growth.
Profitability improved as the year progressed, with Q4 EBIT increasing 17.5% year-on-year to Sfr148m. Airfreight volumes in the quarter rose 4.7% to 558,000 tons, and air revenues were up 9.4% to Sfr2.2bn.
Across the entire company, net revenues grew 4% to Sfr24.8bn, while EBIT declined 13% to Sfr1.6bn and earnings dropped 16% to Sfr1.2bn. Kuehne+Nagel noted that exchange rates and profit pressures at existing clients impacted overall financial performance.