According to FedEx’s fiscal report for the fourth quarter, earnings were adversely impacted by ongoing demand weakness and cost inflation, but this was largely offset by cost-reduction initiatives and an increase in US domestic package yield.
FedEx has stated that it decided to offer some aircraft and other assets an early retirement in order to lessen the negative consequences of persistent demand deterioration.
In order to modernize its air fleet, enhance its worldwide network, and better align air network capacity with present and anticipated demand, the corporation will also remove 18 aircraft from operation.
FedEx Express announced that during the fiscal year 2024, it will park 20 aircraft and permanently retire nine more MD-11 freighters.
However, the business is also looking forward to the delivery of 10 Boeing planes that were ordered many years ago.
“The solid close to the fiscal year demonstrates the significant progress Team FedEx has made in advancing our global transformation while adapting to the dynamic demand environment,” Raj Subramaniam, FedEx Corp. president and chief executive officer said in a statement.
“FedEx is becoming a more flexible, efficient and data-driven organization as we significantly lower our cost structure, drive enhanced profitability, and deliver outstanding service for our customers.”