DHL Group boosts profit despite lower shipment volumes, revenue

DHL Group revenues dipped during the first quarter, but operating profit improved 8. 3% behind strong performance from the Express and Supply Chain divisions despite disruptions caused by the conflict in the Middle East and negative currency impacts. DHL Express revenues slumped 1.

9% to 6 billion euros, equivalent to $7 billion, but earnings before taxes and interest jumped 20. 6% due to aggressive capacity management, cost discipline and yield management, according to financial results released on Thursday. Adjusted revenue was up 2%.

Express has recorded seven consecutive quarters of operating profit as it ramps up its Fit for Growth campaign, which aims to take out more than $1. 2 billion in structural costs over three years.

The revenue and profit increase was achieved even as average daily shipment volume for the time-definite international air product fell 6%, thanks to increased weight per shipment. Weight is a core metric for assessing asset utilization and network profitability because sales are substantially based on weight and yield. TDI weight per shipment is up 4.

4% since 2019 and 2. 9% year over year, excluding U. S. destinations — a big improvement from recent quarters. “This higher profitability, despite lower shipments, is not a coincidence, but the result of how we steer sales, pricing, and network cost in close alignment,” said Chief Financial Officer Melanie Kreis during an earnings briefing with analysts.

DHL’s investment in more modern, fuel-efficient Boeing 777 freighter aircraft since 2019, including the addition of several new 777-300 converted freighters in recent months, also played a role in margin expansion, CEO Tobias Meyer added.

And the company is using artificial intelligence to better judge which vehicles need ad hoc repairs, as well as regular maintenance and tire renewal, which reduces repair shop visits and costs. The Iran war, which began on Feb. 28, had little impact on DHL’s overall earnings during the quarter, he said.

By rerouting freighter aircraft and making other network adjustments, the division was able to respond to Iran war impacts and maintain service for customers.

DHL, for example, was forced to temporarily suspend operations at its regional hub in Bahrain, but shifted the dedicated fleet to airports in Riyadh, Saudi Arabia, and Muscat, Oman, several days after the conflict started. Some long-range aircraft were relocated to Europe so they could be better utilized.

The parcel and logistics titan also heavily leaned on its road network to move shipments from those airports to the United Arab Emirates, Qatar, Bahrain and Kuwait. DHL made a similar pivot for container shipments managed by the Global Forwarding division.

As ocean carriers diverted to ports in Oman and on Saudi Arabia’s Red Sea coast to offload import traffic, DHL secured extra trucking capacity to distribute goods around the Gulf region. Weak jet-fuel availability, especially in Asia, is a growing concern as the war cuts off tanker shipments to many parts of the world.

DHL has to buy fuel in the commercial market at Asian airports, unlike in Europe where it has direct supply contracts with energy providers. DHL has the option to fuel up planes at origin destinations so there is enough fuel for the outbound leg, but that is only possible for regional and short-haul flights, Meyer explained.

Tankering doesn’t work for intercontinental flights because it would reduce too much payload. Established pricing and surcharge mechanisms will allow DHL to pass on conflict-related costs to customers as recovery charges kick in over time, the company said. Global Forwarding revenue declined 5% due to lower freight rates.

Capacity shortages, including at Middle East airlines, and higher oil prices resulting from the conflict in the Middle East caused freight rates to rise again significantly at the end of the quarter. Airfreight volumes increased 3. 8% to 438,000 metric tons, driven primarily by the Asia-Europe trade lane and exports from Latin America.

Air freight revenues decreased 2. 2%. Ocean freight demand moved up 2% year over year to 804,000 standard shipping units, with growth particularly strong from Asia to Europe. Ocean freight revenue and gross profit decreased by 16. 5% and 17. 5%, respectively, during the quarter, reflecting the normalization of market freight rates underway since 2025.

Supply Chain revenue grew 5. 7% thanks to new customers, contract renewals and continued expansion of e-commerce activities, led by the Americas region, DHL said.

DHL eCommerce, which provides parcel delivery, returns and international shipping customized for online merchants, generated 11% less revenue than in the prior year period due to negative currency effects and not including UK contributions so the Evri merger in September doesn’t skew comparisons. Absent those factors, revenue increased by 4. 9%.

Group adjusted revenue, excluding currency impacts, has gradually improved over the past year and was up 2% year over