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FedEx boosts Madrid airside capacity for peak season

FedEx Express has completed the modernisation of its second airside facility at Adolfo Suárez Madrid-Barajas Airport to increase operational capacity and streamline customs procedures as peak season air cargo demand continues. The express giant said the modernisation of the facility adds 1,550 sq m of airside operational warehouse space and 913 sq m dedicated to technical and administrative offices. The refurbished facility adds to the existing FedEx airside capacity at the airport. Together, they bring the company's total airside operational footprint in Madrid to more than 4,500 sq m. This new facility supports Madrid's strategic role as a primary gateway and global transit hub within the company's European and intercontinental network, said FedEx. The facility incorporates four dedicated trailer docks, a castor deck roller platform capable of handling and manoeuvring up to 14 ULDs, and a high-density storage area with secure space for 5,700 pieces. The facility is also equipped with automated sorting systems, Check-Weight-Cube dimensioning and weighing equipment, and X-ray screening systems for shipment inspection. In addition, it features a Temporary Bonded Warehouse (ADT) and an authorised customs area. FedEx explained that the operational model of the new facility is designed to meet the demands of express and high-value cargo transportation and will help centralise Express and Economy shipping flows to and from the Canary Islands, simplifying customs formalities and shortening transit times. Furthermore, FedEx said the facility expands consolidation capacity for European Union Economy shipments bound for key destinations across Latin America and the United States. The facility also streamlines the comprehensive handling of International Priority Freight (IPF) shipments -- priority cargo and heavyweight goods -- which require direct ramp connectivity and priority customs processing, while providing additional surge capacity to accommodate seasonal volume peaks or tailored projects for strategic customers. "This expansion in Madrid-Barajas represents a critical milestone in strengthening our logistics infrastructure across the Iberian Peninsula," said María José Palacios, senior manager hubs & gateways Iberia, FedEx. "By consolidating core air cargo, transit, and customs capabilities at one of Southern Europe's most vital hubs, we deliver the resilience, speed, and scalability that Spanish businesses demand. "Amid significant growth in cross-border trade and on the eve of the peak shipping season, this modernised facility streamlines cross-border flows and shortens transit times, ensuring our customers connect better with global markets."

DHL forwarding sees airfreight rise but some volumes move to express

DHL reported increases in airfreight revenues, profits and volumes in the third quarter but saw some potential volumes move over to express. The company's forwarding division saw third-quarter airfreight revenues increase by 30.4% year on year to €1.5bn, while airfreight gross profits increased by 28.4% to €321m and airfreight volumes were up 12% on last year to 497,000 tonnes. The company said that volumes were up on demand out of Asia, while performance had also been boosted by higher airfreight rates. "The [forwarding] division helped customers adapt transport routes to changing trade flows and maintain reliable supply chains," the company said in a press release. Overall third-quarter forwarding revenues also improved, up by 23.4% to €5.6bn and operating profits stood at €259m, up 32.7%. The company said that overall growth also reflects the successful pass-through of cost and fuel inflation to customers. Overall market airfreight rates and volumes have been on the rise this year due to higher fuel costs, a surge in demand for the transport of data centre-related goods, overall market strength, the conflict in the Middle East and capacity tightness from certain markets. Express shift The express division reported a 19.2% increase in third-quarter revenues to €7bn, while ebit was up 50% to €1bn, in part because of constraints in airfreight. "DHL Express benefited from a continuing gradual rise in weight transported throughout the network. Capacity constraints in the airfreight market also had a positive effect on earnings of around €100m," DHL said. "The positive earnings performance from increased capacity utilisation was additionally supported by effective cost and yield measures." Time Definite International daily shipment weight was up 9.7% year on year as the express division targets heavier cargo. Earlier this year, Mike Parra, the chief executive of DHL Express for Europe, told Air Cargo News that the shift to heavier shipments has been partly driven by e-commerce platforms moving away from the integrators to lower-cost bulk transport and 'local hero' last-mile networks, resulting in the share of heavier shipments increasing. However, the current geopolitical unpredictability and war in Iran have helped accelerate the change as an increasing number of urgent heavier items find their way into the express network because of the speed, certainty and uncomplicated pricing model on offer. To capitalise on the trend and as part of its strategy to refocus on industrial customers, at the start of the year, DHL Express launched a Heavy Weight Express (HWX) service that can transport shipments of up to 1,000 kg per piece and 3,000 kg per shipment. Forwarding comparison Compared with its forwarding rivals, Kuehne+Nagel saw airfreight revenue rise by 38% year on year in the quarter while volumes were up 10%. DSV saw air forwarding revenues increase by 16.6% despite a drop in volumes of 3%. Earlier this year, DHL Group raised its operating profit outlook for the year thanks to the strong performance of its express division and expectations for a good peak season. The logistics and express giant now expects to post earnings before interest and tax (ebit) for the year of €7bn, compared with its previous forecast of €6.5bn.

KLM reshapes cargo handling as AI demand fuels growth

KLM plans to consolidate cargo handling at Schiphol to accommodate additional freight without hiring more staff, as AI supply chains and disruption to ocean shipping strengthen parent Air France-KLM's cargo business. The changes form part of a wider restructuring, announced today, aimed at improving KLM's finances and its ability to fund investment. Freight carried on passenger aircraft and freighters will be handled in KLM's own warehouse at Schiphol, said the airline, adding that the consolidation would help attract more transfer freight and prepare for a new cargo terminal, scheduled for completion in 2035. "The increased cargo volumes will ultimately be handled without hiring additional employees," KLM said. It plans to achieve this through "simpler processes, greater automation and deploying employees across different activities". It also intends to expand services for customers requiring additional support, although it gave no further detail. The announcement follows conversations at last week's TIACA Air Cargo Forum in Miami, where The Loadstar heard that AI infrastructure shipments were contributing to transit cargo flows through Amsterdam. Air France-KLM's third-quarter results provided evidence of the wider demand trend. Group cargo revenue increased 25.2% year on year, to €677m ($760m), while cargo traffic revenue rose 24.9%, to €566m. The group attributed the growth to sea-to-air modal shift amid disruption around the Suez Canal and Strait of Hormuz, alongside AI-related demand. "The surge in air freight demand driven by AI-related supply chains tightened global market conditions," it said. This helped the group win additional volumes and full-freighter charter business, supporting yields. KLM's cargo traffic, measured in revenue tonne-km, rose 15.7% against capacity growth of 4.5%. Its cargo load factor increased 5.2 percentage points, to 53.9%. Across Air France-KLM, tonnage rose 5%, to 236,000 tonnes. Revenue per available tonne-km increased 21.9% at constant currency, with demand outpacing capacity growth. Scheduled and unscheduled maintenance constrained freighter availability. Schiphol's latest monthly figures show September cargo volumes of 127,750 tonnes, up 8% year on year, with growth of 10% over the first nine months. Freighters accounted for 54% of September tonnage, and belly cargo 46%. Despite cargo's performance, KLM said its overall profitability remained insufficient to support investment. Third-quarter adjusted operating profit rose to €458m, from a restated €352m a year earlier. "Fuel prices continue to put pressure on our results, our cost base remains too high," said KLM CEO Marjan Rintel. The Dutch carrier is seeking a further €1bn improvement in annual earnings, taking its total target to €1.4bn, and at least an 8% structural productivity increase by 2028. The wider programme involves around 5,000 positions whose work has been, or will be, reorganised, including transfers to external providers and the parent group. Productivity improvements are expected to result in approximately 1,000 fewer positions at KLM. The airline expects to limit the impact through natural attrition, voluntary arrangements, and internal transfers.