DHL expects to meet 2026 targets as peak-season parcel demand offsets fuel cost pressure

Traders Union
All News
Business & Wealth
Companies
DHL 2026 targets on track

Highlights

DHL expects its domestic Post & Parcel unit to post higher Q4 operating profit than Q3 on stronger pre-holiday parcel volumes.
DHL reiterated its 2026 target of more than 900 million euros operating profit for the Post & Parcel unit and plans German letter postage rate hikes from January 2027.
Aviation fuel costs at DHL Express rose by about 1 billion euros year-to-date, but fuel surcharges allow most costs to be passed to customers, limiting profit impact.

Fourth-quarter outlook and earnings support

As reported by Reuters, DHL says its domestic Post & Parcel business is expected to deliver higher fourth-quarter operating profit than in the third quarter, helped by stronger parcel volumes ahead of the holiday season.

Finance chief Melanie Kreis says the unit needs to generate about 1 billion euros in annual operating earnings over the longer term to help finance its shift from traditional mail toward parcel delivery. She says that if the business falls below that threshold this year, reaching 1 billion euros again next year remains important because the group needs to keep investing.

DHL reiterated in October its 2026 target of more than 900 million euros for the unit. Deutsche Post, part of DHL, also said last month that it plans to raise German letter postage rates for private customers from January 2027 as rising costs and regulatory pressure weigh on the business.

Kreis says those price increases are expected to support earnings from early next year.

Fuel costs and EU import rule changes

At DHL Express, aviation fuel costs rose by around 1 billion euros in the first nine months of 2026, reflecting an oil price spike linked to the Iran war.

Even so, the group says its fuel surcharge mechanism lets it pass most of the increase on to customers, limiting the hit to profitability as peak shipping volumes build.

On the European Union’s new rules for low-value imports, including a new 2 euro charge on shipments worth 150 euros or less that has been in force since Nov. 1, Kreis says it is still too early to judge the impact. DHL still expects the usual fourth-quarter peak in shipping demand despite the regulatory changes.

In our earlier report on conflict-driven spikes in oil shipping costs, we explained how attacks and heightened risks on key routes pushed tanker freight and insurance rates sharply higher, making transport a much larger component of crude prices. We also noted that the surge can feed through into broader consumer costs, while unevenly affecting import-dependent markets and benefiting tanker owners as long as disruptions and rerouting persist.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.