Reported 4 months ago
FedEx is set to retire nine MD-11 freighters by the end of the fiscal year, aiming to enhance efficiency by segmenting its air assets and reducing daytime flying linked to a U.S. Postal Service contract expiration. This restructuring effort will allow FedEx Express to adapt its air network better, optimizing aircraft utilization and maximizing profitability. The company's Drive initiative, which aims to save $4 billion in costs by 2025, has already shown positive results, with three consecutive quarters of operating income growth despite revenue declines. FedEx is also implementing a color-coded air network strategy to streamline operations and cater to different customer segments, anticipating potential growth as market conditions improve.
Source: YAHOO