Panalpina is standing firm as competitors pursue its business, with half year profits almost reaching the highs of 2018.

Consolidated profits were down 5.7% to 34 million Swiss francs, driven by the airfreight sector seeing a fall in the automotive sector.

Airfreight volumes were up 5% to 511,700 tonnes, primarily due to a stronger first quarter, followed by a flat second quarter.

Gross profits for the airfreight sector were down 5% to CHF 337.2 million, the EBIT-to-gross-profit margin fell to 11.4%, with a 9% decrease in the gross profit per ton to CHF 659, pushing down EBIT to CHF 38.4 million.

Stefan Karlen, CEO of Panalpina says: “After it was announced that Panalpina and DSV would join forces, our competitors went more aggressively after our business in the second quarter, but we stood our ground.

“The decrease in gross profit was chiefly the result of lower margins in air freight and lower volumes from the automotive sector, which shifted into reverse gear. Nonetheless, group EBIT and profit almost reached last year’s levels. Given these circumstances, our stable half-year results are a respectable achievement.”