“2024 was a pretty strong year of growth for us,” dnata CEO Steve Allen tells Cargo Airports & Airline Services in an exclusive interview. The handling company’s overall revenue rose by around 15% over the last 12 months, with cargo proving itself the “hero”.
Allen reveals that dnata’s cargo business “grew significantly” in 2024 with cargo tonnes up 16%, and is now “where we are continuing to focus our efforts – expanding our cargo capability”.
He says: “Our wins have far exceeded the losses in contractual terms, reinforcing our position as an admired handling organisation. The time we’ve invested in getting things right truly paid off in 2024.”
2024 in review
Dubai has been a particular highlight for dnata over the last year after exceeding the handler’s average growth rate across its entire global network at 18%. The company has benefitted greatly from Dubai International Airport (DXB)’s position as the busiest international airport in the world, according to Allen.
And the organisation is continuing to invest in two very large projects: the cargo facility in Amsterdam, which will officially open in June later this year, and the new cargo facility in Erbil in Iraq. The CEO is “very confident that Erbil will remain a major gateway to northern Middle East, despite uncertainty in the region”.
Another highlight for 2024, Allen says, was the launch of dnata’s OneCargo system in Dubai in April, which he believes will significantly enhance the company’s position as the industry continues to digitalise. The rollout of the new platform will continue globally.
2025 outlook: Geopolitics and the e-commerce boom
“The big question for this year is how geopolitics and trade flows will evolve,” says Allen. “We’re in a strong position because of our global footprint, but we’re closely monitoring these developments.
“We’ll have to see if more trade barriers are introduced and how current conflicts around the world unfold. These factors shape which regions benefit, which don’t, and how cargo flows are affected. Typically, when one part of the world suffers, another benefits – and over time, the situation tends to even out.”
But: “This is something we’re keeping an eye on because we do see greater cargo flows east-to-east and west-to-west, rather than east-to-west.”
One key trend that dnata intends to monitor over the next 12 months is the e-commerce sector, which continued to boom through 2024 and has proven particularly fruitful for the cargo handling community. Allen tells CAAS that dnata is gearing up to meet demand.
He says: “E-commerce is growing rapidly – and our facilities must be ready to handle greater volumes moving through air travel. We need to align our business with market trends and will continue to stay on top of these developments in the longer term.”
But there are challenges ahead, Allen warns. Global labour shortages have continued to impact the aviation industry negatively post-pandemic – with handlers bearing the brunt. At dnata in particular, staff costs and availability are proving to be the biggest challenge in Europe and the US, as well as Australia.
The solution, he says, is automation: “We need to continue innovating and exploring new technologies to be able to replace or automate some of the more manual processes. A great example of this is our Amsterdam cargo facility which will feature a high level of automation. We will also implement a new resource management tool to optimise our workforce.”
Allen claims that Amsterdam will be dnata’s most efficient facility across its entire network. It has become the model that dnata stations globally are aiming to imitate.
The new dnata Logistics warehouse in Dubai, which is scheduled for completion by November this year, will leverage the latest technology to drive innovation in its operations. Located near DWC, the 57,000 square-metre facility will adopt automated systems for cargo storage and retrieval (ASRS), as well as an AI-driven warehouse management system (WMS) that promises to deliver “superior efficiency”.
Expansion
Looking ahead, Allen says the company is looking at a number of projects globally to expand its footprint. Particular regions of focus include South America and the Middle East – where it already has a strong foothold – as well as the Asia-Pacific region.
“Without disclosing the deals on the table, I can say that we are looking to expand in these regions,” he says. “We’re at the final stages of diligence on a number of acquisitions right now.”
Europe is also a major focus. Last year, the handler won a new contract through its majority-owned subsidiary in Rome – making the Italian capital dnata Group’s third largest base globally once up and running.
Allen suggests a number of acquisitions will be completed through 2025 but stresses that dnata is not in a hurry to expand. The handler intends to “grow steadily” while maintaining its size in the market.
“We’ve always grown through a very diligent process of ensuring we make wise investments that have a good return,” he says. “We already have quite a significant footprint across all major markets.
“The new markets are risky in many different ways. Therefore, we need to make sure we have the right partners, the right leadership, and the capability to deliver a quality product – and that it is not just growth for the sake of growth.”
