Weak Air Freight Volumes Squash Panalpina Earnings

Weak Air Freight Volumes Squash Panalpina Earnings

Panalpina Group’s air freight volumes are expected to be weak in the third quarter of 2012, negatively affecting the company’s preliminary earnings (EBITDA), estimated to be between CHF 15 and CHF 20 million (US$16.1 and $21.4 million), including a one-off charge of $12.9 million, the supply chain provider reported Oct. 12.

Despite increases in ocean freight, air freight volumes were down 8 percent year-over-year. After disappointing July figures and an improvement in August, September air freight volumes were expected to grow, CEO Monika Ribar said in a written statement.

Decreased activity in European trade lanes, as well as certain industries like telecom and chemicals, contributed to the slump this quarter, the company said.

Final results will be published Nov. 12.