DHL expects to hit 2026 targets, helped by peak end-of-year demand despite high fuel costs

By Anastasiia Kozlova

Nov 5 (Reuters) - DHL DHLn.DE — and especially its parcel and postal business — is on track for a strong fourth quarter and to meet its 2026 targets, finance chief Melanie Kreis said on Thursday, as the logistics group navigates higher fuel costs and changes to EU import rules.

The German group expects fourth-quarter operating profit at its domestic Post & Parcel unit to rise from the third quarter, supported by seasonally stronger parcel volumes ahead of the holiday season.

Kreis said the unit needed to generate about €1 billion ($1.1 billion) in yearly operating earnings in the longer term to help fund its shift from traditional mail to parcel delivery.

"If we fall below that threshold this year, it's important that we reach the €1 billion next year again, because we need to invest," Kreis said. DHL had reiterated its 2026 target of more than €900 million for the unit in October.

Deutsche Post, part of DHL, said last month it planned to raise German letter postage rates for private customers from January 2027 due to rising costs and regulatory pressures.

DHL expects these price increases to support earnings from early next year, Kreis said.

HIGHER FUEL PRICES, IMPORT COSTS TEST CUSTOMERS

At the DHL Express division, aviation fuel costs jumped by around €1 billion in the first nine months of 2026, reflecting a spike in oil prices triggered by the Iran war.

However, the group said its fuel surcharge mechanism allowed it to pass most of the increase on to customers.

Asked about the European Union's new rules on low-value imports, including a new €2 charge on shipments of goods worth €150 or less, in force since November 1, Kreis said it was too early to assess the impact and that DHL still expected the traditional fourth-quarter peak in shipping volumes.

($1 = 0.8880 euros)