Declining volume development shaped 2023. Within the context of the high levels of economic uncertainty around the world and consumer reluctance, both the B2B and the B2C volumes were down year over year. In this environment, our virtual airline model ensured high network flexibility, enabling us to constantly adapt our capacity to volume expectations.
Express: effective yield and cost management
Revenue in the Express division decreased by 10.0% to €24,846 million in the 2023 fiscal year. This includes negative currency effects amounting to €1,196 million, as well as lower fuel surcharges. Excluding currency effects and fuel surcharges, revenue in the reporting period was down 4.8%. Reflective of the continued softer market conditions, TDI daily shipment volumes declined by 2.5%.
Over the course of 2023, benefits were seen from the drive to enhance productivity, optimize the utilization of capacity in our network and effectively manage costs. We addressed the ongoing effects of inflation with general price increases that were systematically implemented. In the 2023 fiscal year, EBIT in the Express division was €3,229 million, 19.8% below the prior-year figure. The return on sales was 13.0%. In the fourth quarter of 2023, EBIT in the Express division was €758 million, 19.4% below the level of the comparable prior-year figure; return on sales was 11.6%.
KEY FIGURES, EXPRESS
€m
2022
2023
+/–%
Q4 2022
Q4 2023
+/–%
Revenue
27,592
24,846
–10.0
7,029
6,558
–6.7
of which Europe
11,287
11,053
–2.1
2,994
2,921
–2.4
Americas
6,149
6,023
–2.0
1,563
1,585
1.4
Asia Pacific
9,908
8,893
–10.2
2,475
2,435
–1.6
MEA (Middle East and Africa)
1,569
1,514
–3.5
400
396
–1.0
Consolidation/Other
–1,321
–2,637
–99.6
–403
–779
–93.3
Profit from operating activities (EBIT)
4,025
3,229
–19.8
941
758
–19.4
Return on sales (%)1
14.6
13.0
–
13.4
11.6
–
Operating cash flow
5,549
4,786
–13.8
1,173
1,054
–10,1
1 EBIT/revenue.
EXPRESS: REVENUE BY PRODUCT
€m per day1
2022
2023
+/–%
Q4 2022
Q4 2023
+/–%
Time Definite International (TDI)
85.8
82.8
–3.5
88.4
89.7
1.5
Time Definite Domestic (TDD)
6.4
6.1
–4.7
6.6
6.5
–1.5
1 To improve comparability, product revenues were translated at uniform exchange rates. These revenues are also the basis for the weighted calculation of working days.
EXPRESS: VOLUME BY PRODUCT
Items per day (thousands)
2022
2023
+/–%
Q4 2022
Q4 2023
+/–%
Time Definite International (TDI)
1,144
1,115
–2.5
1,191
1,211
1.7
Time Definite Domestic (TDD)
554
486
–12.3
564
507
–10.1
Continuing to expand and modernize network and intercontinental fleet
As part of the upgrading of our intercontinental fleet, we signed contracts with Boeing between 2018 and 2022 to purchase a total of 28 new B777 aircraft. By the end of 2023, 22 of the aircraft ordered entered service. The remaining six aircraft will be delivered in 2024 and 2025. Furthermore, over the course of 2023, we continued to expand our air network with the addition of new direct services, for example between Guangzhou and the United States. Singapore Airlines now operates five B777s under the crew and maintenance agreement signed in 2022.
DHL Air UK expanded its B777 operations from three to seven freighters. DHL Air Austria added two B767–300 to its operations. European Air Transport (EAT) continues to strengthen DHL’s network by providing intercontinental services to Asia and the United States. In the Americas region, our regional hub located in Atlanta, USA, which opened in the previous year, bolstered our capabilities. The dedicated flights from Miami to São Paulo (VCP), Brazil, were extended to include Argentina as well. We are continuing to invest in our global hub in Cincinnati, USA, and constructed a state-of-the-art aviation maintenance facility there for our aircraft fleet. In the Asia Pacific region, three additional converted Airbus 330–300s were added by Air Hong Kong to its fleet. The fleet replacement and modernization program will continue in 2024. The extension of the hub in Hong Kong – one of DHL’s three global hubs – was officially opened in 2023. In the MEA region, we invested in our infrastructure by modernizing the Bahrain hub. We also increased our fleet of B767–300s from seven to ten converted freighters, of which the last was added in June 2023. The increase in the number of aircraft has allowed us to link east to west as well as strengthen the regional network. In sub-Saharan Africa, four converted ATR 72–500s replaced older aircraft.
