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In the first quarter of 2024, Kuehne+Nagel (K+N) saw a decline in both airfreight-related turnover and profit compared to the previous year, leading to disappointing results overall. Turnover across the company dropped by 18% and gross profit by 13% from the first quarter of 2023, reflecting a similar trend in the Air Logistics segment.
Despite the decrease in financial performance, K+N handled 491,000 tons of airfreight in the first three months of 2024, a 3.4% increase from the same period in 2023. The net turnover for Air Logistics was just under CHF1.6bn, with an earnings before interest and taxes (EBIT) of CHF94m.
During this period, K+N expanded its Air Logistics gateway at New York’s JFK Airport by adding a new temperature-controlled area with 7,200 sq m of storage space. This enhancement will play a crucial role in advancing healthcare logistics in the United States, according to K+N.
In addition to negative exchange rate effects of 3%, the overall results for K+N were lower than expected. This decline was also observed in the Sea Logistics, Road Logistics, and Contract Logistics segments.
Stefan Paul, the CEO of K+N, acknowledged the challenges faced by the company but emphasized their focus on efficiency and cost reduction across various logistics segments. He highlighted a 12% reduction in costs per unit in Sea Logistics and a 14% decrease in Air Logistics.
In recent news, K+N announced a shift to direct reporting among its country organizations, discontinuing the regional structure. This change aims to simplify responsibilities, enhance adaptability to market changes, and enable quicker decision-making. Paul believes that this restructuring will support further growth and improve customer accessibility worldwide.
