Swiss cargo business Kuehne+Nagel reported a better-than-expected profit in the first quarter of the year (Q1 2023) but saw its air freight business' revenue fall 41% year-on-year.
"Net turnover of the air logistics business unit amounted to CHF 1.9bn and EBIT to CHF 154 million," the company said, citing "an overall declining air freight market".
The cargo business said there has been a "rapid normalisation of supply chain environment following the exceptional situation in 2021 and 2022" as its overall profit dropped 45% to CHF 612 million (UDS$ 689 million) across its air, contract, road and sea operations.
"With our focus on cost control through the consistent exploitation of the asset light model, the Kuehne+Nagel Group was able to hold its own in this environment and expand its market share worldwide. We already see early successes from the strategic Roadmap 2026 presented in March, " said Stefan Paul, the chief executive.
Overall revenue came to CHF 6.75bn, down from over CHF 10bn for the period in 2022.
Among the operating highlights for the period, the company issued a reminder that as part of a long-term charter agreement with Atlas Air, it took delivery of the last Boeing 747 ever made, to be used "primarily for freight on the transpacific route for Kuehne+Nagel’s subsidiary Apex Logistics".