Kuehne+Nagel Profits Soar as AI Transforms Air Freight

AI-Linked Air Freight Lifts Kuehne+Nagel Profit in Strong Third Quarter

Kuehne+Nagel reported sharp increases in revenue and operating profit for the third quarter of 2026, driven by strong air freight demand from technology customers, market-share gains in ocean shipping and continued cost controls.

The Swiss logistics group said net turnover rose 22% year over year to CHF 7.4 billion. Earnings before interest and taxes, or EBIT, increased 53% to CHF 435 million, while earnings rose 53% to CHF 316 million. The results exceeded analysts’ expectations, with quarterly operating profit above the median forecast of CHF 398 million.

The company raised its full-year guidance for recurring operating profit for the third time this year. Kuehne+Nagel now expects recurring EBIT of between CHF 1.5 billion and CHF 1.6 billion in 2026, compared with its previous range of CHF 1.35 billion to CHF 1.55 billion.

Management attributed the improvement to higher volumes, stronger gross profit and a greater share of that profit converting into operating earnings. Cost discipline also played a significant role. Kuehne+Nagel expects to generate more than CHF 150 million in gross savings from its cost-reduction program this year, up from an earlier target of at least CHF 120 million.

Technology demand drives air freight growth

Air Logistics was the company’s strongest-performing major business unit during the quarter. Net turnover increased 38% to CHF 2.4 billion, while EBIT surged 84% to CHF 169 million. The unit’s conversion rate, which measures how much gross profit is converted into operating profit, reached 32%.

Air freight volumes totaled 1.7 million tonnes through the end of September. Kuehne+Nagel said quarterly volume growth accelerated 7% from the second quarter and 10% from the same period last year, substantially ahead of overall market growth of about 6%.

Demand was strongest among customers tied to cloud infrastructure, semiconductors and other technology sectors. General cargo volumes were also healthy. A significant portion of the additional air freight moved on dedicated freighter aircraft, according to company commentary.

The company said market-share gains accounted for roughly 60% to 70% of its volume outperformance. At the same time, yields remained broadly stable from the previous quarter because of improvements in unit costs. That combination—higher volumes, stable yields and better productivity—helped produce the large increase in operating profit.

The shift in cargo mix is important. Kuehne+Nagel said lightweight e-commerce volumes declined during the quarter, with changes in European customs fees and U.S. tariffs on low-value goods affecting that segment. Technology-related freight, including shipments supporting artificial intelligence and data-center expansion, has taken on a larger role in the company’s air cargo business.

Ocean freight returns to growth

Sea Logistics also improved after a weaker first half. Ocean volumes increased 5% year over year and 6% sequentially, while EBIT rose 55% during the quarter.

Growth came mainly from market-share gains on Asia outbound routes and transatlantic trade lanes. Kuehne+Nagel said it won additional business from China-based exporters and benefited from a recovery in U.S. import demand. The company also continues to expand in China-origin controlled freight, supporting shipments for Chinese businesses seeking to grow internationally.

Management expects ocean yields to remain stable at elevated levels through the first quarter of 2027. The company said newly signed multinational customer agreements will take two or three years to become fully implemented, meaning the related freight activity is expected to build over time.

Trucking and contract logistics also contribute

For trucking operations, Kuehne+Nagel reported a 40% increase in profit, supported by stable demand in North America and Europe. The company did not provide detailed regional volume or rate figures for its road business, but the result indicates that trucking remained a positive contributor alongside the stronger air and ocean forwarding operations.

That performance matters to professional drivers because forwarding companies increasingly manage freight across several modes rather than relying on one transportation service. Air and ocean shipments often require truck moves to and from airports, ports, distribution centers and customer facilities. When technology, retail or industrial freight volumes rise, the effects can extend to drayage, regional hauling and scheduled delivery operations.

Contract logistics revenue increased 9%, while EBIT rose 7%. Kuehne+Nagel signed 37 new contracts during the quarter, which the company said should support future revenue growth. It also has a long-term logistics agreement with Amazon tied to the construction and operation of data centers, with air, ocean, road and contract logistics operations all contributing.

Productivity remains a central focus

Kuehne+Nagel said productivity improvements helped increase the portion of gross profit converted into operating profit to 18.2%, compared with 13.4% a year earlier. The company has also said that artificial-intelligence-driven productivity gains are expected to begin contributing more visibly from 2027.

The group continues to invest in digital logistics capabilities, including a new technology center in Chennai, India. Kuehne+Nagel expects to hire about 250 technology workers there by early 2027 to support its digital forwarding platform and other supply-chain tools.

For the freight transportation industry, the third-quarter results show how uneven demand has become across cargo categories. E-commerce volumes have weakened in some markets, while data-center construction, semiconductors and cloud infrastructure are generating strong demand for time-sensitive air freight. At the same time, ocean and trucking operations are benefiting from new customers, recovering trade lanes and the need to move freight between major transportation hubs.