AI air freight drives Kuehne+Nagel profit increase

Kuehne+Nagel, the world's largest freight forwarder by gross revenue, reported a 22% increase in revenue to $8.97 billion and a 53% rise in pre-tax earnings to $527 million in the third quarter. The company's strong third-quarter results were driven by artificial intelligence (AI) related air freight demand and ongoing cost controls, which surpassed analysts' estimates.

Air logistics revenue grew by 38% year-over-year to $2.88 billion, while pre-tax earnings grew 84% during the quarter and were up 35% year-to-date. The air and ocean forwarding business outperformed competitors by securing more business from Chinese retail marketplaces and hyperscalers, taking market share from rivals. Management reported annualized cost savings of $242 million by year's end, with productivity contributing to increased operating profit.

Kuehne+Nagel expects further volume gains during the peak season, particularly in high-yielding segments. The company is also investing in cold chain capabilities for pharmaceutical customers and plans to expand its digital logistics solutions footprint in Chennai, India.