Logistics News | Austrian Post Raises Parcel Prices

Author Name: Tiffany Lee – Marketing Analyst at FreightAmigo｜25/8/2022

Austrian Post released the financial report for Q2 of 2022 (April to June), which showed that domestic parcel volume is declining. To reduce costs and increase profitability, the postal service is set to raise the prices of parcels.

The postal service reported strong performance in the domestic parcel business, with Q2 revenue up by 3.4% to EUR 172.8 million. Volume development in the Austrian parcel market showed an improved trend, with a 1 % decline in Q2 compared with a 9 % in Q1. The postal service plans to reduce administrative costs and increase postal service amid increasing delivery costs and soaring inflation.

The postal service’s parcel business in Southeast and Eastern Europe also experiences strong development. The revenue increased by 8.9% to EUR 43.2 million in Q2. The revenue of the Parcel & Logistics Division, however, decreased by 5.1% in Q2 since the parcel business in Turkey was strongly impacted. However, Parcel & Logistics Division’s earnings before interest and taxes (EBIT) increased by 17.4% including special effects of EUR 10.9m in connection with the Turkish subsidiary Aras Kargo.

Austrian Post planned to continue to expand the logistics infrastructure in the future. The expanded capacities of the parcel logistics centre in Upper Austria will be put into operation in September 2022. Until then, a total capacity of 130,000 parcels per hour is sorted in logistics centres.

During the holiday season, the shipping prices may be further increased. Now is the time to plan for shipping and delivery!

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