Business

Deutsche Post flying high as pandemic boosts e-commerce

 DHL owner buying eight Boeing aircraft as pandemic fuels package boom spurred by online shopping

Updated 5 years ago · Published on 13 Jan 2021 7:10PM

Deutsche Post flying high as pandemic boosts e-commerce
German logistics giant Deutsche Post posted pre-tax profits of €4.8 billion  in 2020, it said in an unscheduled announcement, outperforming its forecast of between €4.1 billion and €4.4 billion – Pixabay pic, January 13, 2021

FRANKFURT – DHL owner Deutsche Post reported record results yesterday and said it was buying another eight Boeing aircraft as the pandemic fuels a package boom spurred by online shopping.

The German logistics giant posted pre-tax profits of €4.8 billion (RM23.45 billion) in 2020, it said in an unscheduled announcement, outperforming its forecast of between €4.1 billion and €4.4 billion.

Revenues climbed 5% year-on-year to €66.8 billion, buoyed by strong performances from the parcels and express units.

“2020 was an exceptional year: despite all the challenges faced, we achieved a record result,” said Frank Appel, chief executive of the Deutsche Post DHL group.

As well as responding to increased e-commerce as the coronavirus closes stores and consumers shop online, Appel said the group was now also helping to distribute Covid-19 vaccines “all over the world”.

Looking ahead, Deutsche Post said it was lifting its outlook for 2021 and 2022, with detailed figures to be announced on March 9.

To meet rising demand for “cross border time-sensitive” shipments, the group’s DHL Express division announced separately that it had ordered an additional eight Boeing 777 freighter aircraft.

DHL Express chief executive officer John Pearson said the unit’s global e-commerce volume grew “by more than 40%” in the final quarter of 2020, which coincided with the peak Christmas shopping season. 

He added that the group was confident that e-commerce was “an enduring megatrend”. 

“This is why we decided to act early and kick off 2021 with this investment in our future,” he said.

The first deliveries are scheduled for 2022. 

No financial details were revealed. But in a previous order in 2018, DHL paid around €4.7 billion for 14 Boeing 777s.

The wide-body B777 is the world's largest twin-engine freighter and has a long range, meaning it needs to make fewer stops on long-haul routes, reducing landing fees and speeding up deliveries. –  AFP, January 13, 2021

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