Kuehne+Nagel reported a decline in airfreight revenues and operating profit in the first quarter of 2026, even as shipment volumes registered marginal growth, reflecting ongoing volatility in global trade conditions and currency movements.
The Switzerland-headquartered logistics group posted airfreight revenues of CHF 1.6 billion, down 9% year-on-year, while earnings before interest and tax (EBIT) fell 4.3% to CHF 111 million. Airfreight volumes increased slightly by 0.4% to 516,000 tonnes over the same period.
Currency Effects and Market Conditions
Kuehne+Nagel attributed part of the revenue decline to foreign exchange fluctuations, particularly the weakening US dollar. On a constant currency basis, revenues were broadly flat year-on-year, while operating profit would have shown an estimated 7% improvement.
The company noted that geopolitical disruptions in the Middle East temporarily tightened airfreight capacity during the quarter, leading to increased demand for charter services across key trade lanes.
Despite these disruptions, overall airfreight unit profitability remained stable, supported by disciplined cost control measures and a favourable cargo mix skewed toward higher-value shipments.
Shift in Cargo Composition
While volumes increased modestly, growth slowed compared with the fourth quarter of 2025, when airfreight volumes rose by 6.6% year-on-year. For the full year 2025, the division had recorded a 7% increase in volumes.
The company reported that the first-quarter slowdown was driven primarily by a decline in lower-yield cargo segments, while high-value sectors such as semiconductors and cloud infrastructure continued to support demand resilience.
Kuehne+Nagel expects airfreight volumes to grow broadly in line with global GDP trends, with the International Monetary Fund forecasting global economic growth of approximately 3.1% in 2026.
Group Performance and Segment Trends
At group level, total revenues declined 12% year-on-year to CHF 5.6 billion, with EBIT down 15% to CHF 343 million and net earnings falling 18% to CHF 248 million.
The most significant pressure was observed in the seafreight division, which was impacted by geopolitical instability and disruptions linked to tensions in the Middle East.
However, management highlighted that overall performance exceeded internal expectations, supported by cost optimisation measures implemented in late 2025.
Strategic Positioning Amid Volatility
Chief Executive Stefan Paul said the group had made a solid start to the year across air, road, and contract logistics segments despite continued market uncertainty.
He noted that seafreight operations had experienced short-term disruption due to regional instability, while rising energy prices and their potential impact on consumer demand remain key monitoring factors.
The company emphasised its global network strength and close customer relationships as key enablers in navigating volatile market conditions, allowing rapid adjustment to shifting demand patterns.
Market Outlook
Despite near-term pressure in airfreight revenues, Kuehne+Nagel indicated confidence in its operational resilience, citing ongoing cost discipline and strategic positioning in higher-value cargo segments.
The group expects continued market volatility through 2026, with demand dynamics influenced by geopolitical developments, currency fluctuations, and energy price movements across global supply chains.
