DHL shifts focus from waning China-US trade in Q3

DHL Group reported 20.1 billion euros ($23.3 billion) in revenue in the third quarter, a decrease of 2.3% year over year. “Within the quarter, we had the abolishment of the [U.S.] de minimis ” policy globally, Chief Executive Tobias Meyer said on DHL’s Nov. 6 earnings call. “I think we have been able to deal with that very effectively by adjusting and shifting capacity , especially in our more asset-intensive global transportation networks.” [caption id="attachment_57289373" align="aligncenter" width="1920"] (Courtesy/DHL)[/caption] Export figures from China to the United States were down 27% in September, leading DHL to focus on areas of growth, Meyer said. Trade increased significantly from Southeast Asia to Europe, as well as to the Middle East, Africa and Latin America, he said. The U.S. “clearly has a lower share of participation in global trade as [it] is increasingly replaced by China as the most important trading partner for many countries in the world,” Meyer said. DHL Group’s consolidated net profit for Q3 was $971.3 million, up 11.9% YoY. Its EBIT was $1.7 billion, up 7.6% YoY, and diluted earnings per share were 87 cents, up 19% YoY. Revenue per division in Q3 was: $6.8 billion for Express, down 3.2% YoY; $5.3 billion for Global Forwarding, Freight, down 9.2% YoY; $5.1 billion for Supply Chain, down 0.4% YoY; $2 billion for eCommerce, up 2.9% YoY; and $4.9 billion for Post & Parcel Germany, up 4.7% YoY. DHL Express took delivery on Sept. 23 of its twenty-eighth 777F (68149) , which entered CMI service with AeroLogic, the joint venture between DHL Express and Lufthansa Cargo. Unit 68149 completes the express integrator’s known 777F direct order backlog with Boeing. The group placed orders for twenty-eight 777Fs from Boeing between 2018 and 2022. DHL received its first 777F from Boeing in May 2019. Shares of DHL Group ( OTCMKTS: DHLGY ) were up 1.77% from market open to $51.05 as of market close today. The company has a market capitalization of $61.2 billion. Air Canada’s quarter harmed by labor dispute Air Canada reported CA$239 million ($170.5 million) in Q3 cargo revenue, down 5.5% YoY. The carrier’s Q3 cargo and passenger operations were hampered by a three-day walkout by flight attendants in August, Air Canada executives said on the company’s Nov. 5 earnings call. Though Air Canada’s six freighters continued to fly during the work stoppage, the carrier lost significant bellyhold cargo capacity. [caption id="attachment_57290456" align="aligncenter" width="1920"] (Courtesy/Air Canada Cargo)[/caption] “Despite a revenue decline of 6%, mostly from reduced belly capacity in August, Air Canada Cargo was adaptable, and the freighter operation continued to demonstrate its value, playing a key role in capturing the opportunity from evolving global trade flows,” Mark Galardo, chief commercial officer and cargo president, said on the call. “This was evident this quarter as our flexibility in capacity from freighters allowed us to carry more of the growing and lucrative cargo demand from Asia to Latin America, fully offsetting other declining flows ,” he said. The carrier reported $188.3 million in Q3 net income, down 87% YoY. Air Canada also reported in Q3: Operating revenue of $4.1 billion, down 5.4% YoY; Operating income of $202.6 million, down 72.7% YoY; Diluted loss per share of 63 cents, down 83.6% YoY; and Adjusted EBITDA of $685.5 million, down 36.9% YoY. Air Canada operates six 767-300BDSFs. The carrier added its eighth 767F (30851) in April 2024 after conversion with IAI in Tel Aviv (TLV). However, in Q2 2024, Air Canada removed its two production 767-300Fs (67024 and 67023) from service and, as Cargo Facts reported in December, has leased them to Ethiopian Airlines . The carrier does not plan more changes to its freighter fleet through 2026, according to the earnings report. Shares of Air Canada ( OTCMKTS: ACDVF ) were down 0.53% from market open to $13.21 as of market close today. The carrier has a market capitalization of $3.9 billion. Air France-KLM cargo revenue dampened by freighter maintenance Air France-KLM Group reported $624.4 million in Q3 cargo revenue, down 3.7% YoY, which the carrier attributed to ongoing freighter maintenance. “We had more freighters in maintenance ... and it extended also more than what we expected,” Chief Financial Officer Steven Zaat said on the company’s Nov. 6 earnings call. [caption id="attachment_57292441" align="aligncenter" width="1800"] (Courtesy/Air France-KLM)[/caption] The group reported $10.7 billion in total Q3 revenue, up 2.6% YoY, and $888.1 million in net income, down 56% YoY. The group also reported for Q3: Income before taxes of $1.2 billion, down 7.6% YoY; 224,000 tonnes of cargo carried, down 1.1% YoY; 3.9 billion available cargo tonne kilometers (CTK), up 4% YoY; 1.7 billion revenue CTKs, down 0.3% YoY; and A load factor of 43.6%, down 1.9 percentage points YoY. The carrier group has seven A350Fs on order as of Airbus’ backlog on Oct. 30, but that will drop to six to reflect its cancellation of two following news of Airbus’ delivery delays in March. Airbus’ backlog already reflects one of the cancellations. Three of the A350Fs are scheduled to join KLM subsidiary Martinair, which will be the first in the group to operate the type, and the other three are scheduled to join Air France, the carrier told Cargo Facts in March. The carrier expects its A350F deliveries to begin in 2027. The A350Fs will replace Air France’s two production 777Fs and KLM’s four 747-400Fs . The carrier group operates: Two 2009-vintage 777Fs (32965 and 32966); Three 2003- and 2004-vintage production 747-400Fs (33694, 33695 and 33696); and One 1990-vintage 747-400BCF (24066). Looking to Q4, the carrier expects the group’s cargo unit revenue to decline YoY, as Q4 2024 saw a lot of front-loading ahead of President Donald Trump taking office, Zaat said. “For the first four weeks of October, we see a decrease in unit revenue of 11%,” Zaat said. “Although cargo has a very short booking window [compared with] the passenger business, and it's difficult to predict the unit revenues ... we expect a double-digit decline in unit revenues compared to last year for the fourth quarter.” Shares of Air France-KLM Group ( OTCMKTS: AFLYY ) were down 5.36% from market open to $1.06 as of market close today. The group has a market capitalization of $2.8 billion. IAG Cargo revenue down YoY due to strong 2024 figures International Airlines Group (IAG) reported $327.2 million in Q3 cargo revenue, down 6.9% YoY. “The demand for cargo is still relatively good, and you can see that our weight we're carrying is still up overall,” Chief Financial and Sustainability Officer Nicholas Cadbury said on the company’s Nov. 7 earnings call. “But we're just seeing some softness in yields.” [caption id="attachment_57143453" align="aligncenter" width="1920"] (Courtesy/Bloomberg)[/caption] Cadbury attributed some of the YoY decline to 2024’s high air cargo yields resulting from disruptions to maritime shipping in the Red Sea . The carrier group reported $10.8 billion in total revenue, which was flat YoY, and $1.6 billion in profit after tax, down 2.3% YoY. The group also reported in Q3: Operating profit of $2.4 billion, up 2% YoY; Profit before tax of $2.2 billion, down 2.1% YoY; 1.3 billion CTKs, down 3.4% YoY; and Cargo revenue per CTK of 26 cents, down 3.6 YoY. IAG Cargo does not operate freighters, relying on belly capacity on passenger aircraft operated by IAG subsidiaries. By subsidiary airline in Q3: Aer Lingus reported 45 million CTKs, flat YoY; British Airways reported 917 million CTKs, down 4.9% YoY; Iberia reported 304 million CTKs, up 1.7% YoY; Level reported 13 million CTKs, down 18.8% YoY; and Vueling did not report any CTKS in Q3 2025 or 2024. Shares of IAG ( OTCPK: ICAGY ) were up 3.15% from market open to $10 as of market close today. IAG has a market capitalization of $22.9 billion. Editor’s note: All amounts have been converted to U.S. dollars. Cargo Facts LATAM 2026, the essential event for stakeholders in Latin America, will take place Feb. 10-12 at the Marquis Reforma in Mexico City. Learn more and register by Dec. 26 to take advantage of early-bird pricing.

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