FedEx continues cost cuts

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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.