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Deutsche Post flying high as pandemic boosts e-commerce

DHL owner Deutsche Post reported record results on Tuesday 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 euros ($5.8 billion) in 2020, it said in an unscheduled announcement, outperforming its forecast of 4.1-4.4 billion euros.Revenues climbed five percent year-on-year to 66.8 billion euros, 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 CEO John Pearson said the unit’s global e-commerce volume grew “by more than 40 percent” 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 euros 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.mfp/dlc/spmDEUTSCHE POSTBOEING

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