FedEx continues cost cuts
- Latest News
- Tuesday, 26 March 2024
FedEx has parked 17 freighter aircraft and relinquished options to buy seven Boeing 767 cargo jets, helping it achieve a better-than-expected operating profit in the third quarter despite lower revenue.
FedEx Express now has 37 deactivated cargo aircraft and will retire nine aging MD-11s, before May 31, chief financial officer John Dietrich has told analysts.
The company also has eliminated US$110 million of recurring costs.
Management expects to meet a goal of US$1.8 billion in permanent cost reductions for this fiscal year and deliver planned savings of US$4 billion by fiscal year 2026, including US$700 million in annual savings from flight operations.
