On November 9, 2023. three giant pandas, including 25-year-old Mei Xiang, 26-year-old Tian Tian, and their three-year-old cub, Xiao Qi Ji, arrived in Chengdu, China on a FedEx Express charter flight from Washington, D.C.
Working with the Smithsonian’s National Zoo and Conservation Biology Institute, the giant pandas began their journey on November 8 and traveled via a FedEx Express Boeing 777F (N886FD), dubbed the “FedEx Panda Express.”
The shipping and logistics company has long worked with the Chinese government and zoos around the world to safely ship giant pandas to and from China. FedEx is proud to donate the cost of transporting the pandas as part of its ongoing corporate social responsibility and environmental conservation efforts.
On their journey to China, the pandas were accompanied by animal care experts from the Smithsonian’s National Zoo and Conservation Biology Institute and traveled in custom-built transport enclosures provided by FedEx. The pandas were the only cargo on the trans-Pacific flight from Washington’s Dulles International Airport to China’s Chengdu Shuangliu International Airport, aside from supplies such as bamboo, water, and their favorite treats, including sugar cane, apples, and pears.
Before their trip, the pandas spent time getting familiar with their enclosures to ensure a safe and comfortable flight. Upon arrival in Chengdu, Mei Xiang, Tian Tian, and Xiao Qi Ji were greeted on the tarmac by their new keepers before moving to the Shenshuping facility in Wolong, where they will quarantine for approximately 30 days.
FedEx also provided trucking and logistical support in Washington, D.C. to safely transport the pandas from the Smithsonian’s National Zoo to the airport. Including this move, FedEx has had the privilege of transporting 15 different pandas on 10 separate flights over the past two decades, including transporting Mei Xiang and Tian Tian to the Smithsonian’s National Zoo from China in 2000 and their cubs from the Smithsonian’s National Zoo to China, including:
· Tai Shan in 2010 · Bao Bao in 2017 · Bei Bei in 2019
The other previous deliveries of giant pandas to and from China include:
· 2023: from USA to China · 2013: from China to Canada · 2012: from China to France · 2011: from China to Scotland · 2003: from China to USA
The FedEx Master Executive Council (MEC), the governing body of the FedEx unit of the Air Line Pilots Association, Int’l (ALPA), yesterday voted to approve a tentative contract agreement reached on May 30 with FedEx management. The next step is a membership ratification ballot, which will open on July 5 and close on July 24.
The new agreement would provide major pension improvements with alternative pension options, significant hourly pay rate increases, an amendable period recovery payment, and other improvements to pilots’ quality of life. The agreement includes a 30 percent pay increase, a 30 percent increase to the pilots’ legacy pension, and a fully developed and equally valuable company-funded Market Based Cash Balance Pension to provide a durable replacement for their legacy pension. To date, it is the largest investment in a pilot contract, on a per capita basis, and substantially raises the bar on pilot retirement.
To educate the pilots on the agreement in advance of the vote, the MEC Negotiating Committee will share the full contract language, publish detailed information about the agreement online, and host a series of road shows that will begin June 20.
“We took a membership-driven approach to these negotiations, with polling and direct feedback throughout the process. We negotiated an industry-leading contract and achieved improvements contract-wide. We look forward to presenting the agreement to our pilots for consideration,” said Norman. “The improvements to our retirement stand out. Not only did we accomplish major improvements to the existing pension benefit—improvements that we sought and management bitterly resisted in past negotiations—but we also crafted a new pension plan that sheds the negative funding aspects of our current plan. The new plan is completely sustainable and ensures that the costs of the plan charged to the company match the value that goes to the pilots. It’s a tremendous accomplishment.”
ALPA President, Capt. Jason Ambrosi, after receiving a detailed briefing of the tentative agreement, applauded the work of the FedEx pilots for reaching a deal that now goes to the pilots for a ratification vote.
“The FedEx pilots successfully fought an intransigent management and secured this deal that, if ratified, will raise the bar on retirement for all pilots. This tentative agreement has the highest value achieved among major carriers in the last twenty years and we’ll strive to build on this pattern in future pilot contracts,” Ambrosi said.
Contract negotiations began in May 2021, the contract became amendable in November 2021, and the parties entered mediation with the National Mediation Board in November 2022. If ratified, the new contract will go into effect in August 2023 and would become amendable in 2028.
“FedEx CEO Raj Subramaniam told CNBC’s Jim Cramer on Thursday that he believes a recession is impending for the global economy.
The CEO’s pessimism came after FedEx missed estimates on revenue and earnings in its first quarter. The company also withdrew its full year guidance.”
Watch the interview:
FedEx Corporation issued this financial statement:
FedEx Corporation has provided a business update and announced the following preliminary unaudited consolidated results for the quarter ended August 31, 2022 (adjusted measures exclude the items listed below for the applicable fiscal year):
Fiscal 2023
Fiscal 2022
As Reported(GAAP)
Adjusted (non-GAAP)
As Reported(GAAP)
Adjusted (non-GAAP)
Revenue
$23.2 billion
$23.2 billion
$22.0 billion
$22.0 billion
Operating income
$1.19 billion
$1.23 billion
$1.40 billion
$1.49 billion
Diluted EPS
$3.33
$3.44
$4.09
$4.37
This year’s and last year’s quarterly consolidated results have been adjusted for:
Impact per diluted share
Fiscal 2023
Fiscal 2022
Business optimization costs
$0.07
$ —
Business realignment costs
0.04
0.19
TNT Express integration expenses
—
0.08
First quarter results were adversely impacted by global volume softness that accelerated in the final weeks of the quarter. FedEx Express results were particularly impacted by macroeconomic weakness in Asia and service challenges in Europe, leading to a revenue shortfall in this segment of approximately $500 million relative to company forecasts. FedEx Ground revenue was approximately $300 million below company forecasts.
While the company took immediate and decisive action to adjust its cost base, the impact of cost actions lagged volume declines, and operating expenses remained high relative to demand. Please see the tables below for preliminary results for each transportation segment.
“Global volumes declined as macroeconomic trends significantly worsened later in the quarter, both internationally and in the U.S. We are swiftly addressing these headwinds, but given the speed at which conditions shifted, first quarter results are below our expectations,” said Raj Subramaniam, FedEx Corporation president and chief executive officer. “While this performance is disappointing, we are aggressively accelerating cost reduction efforts and evaluating additional measures to enhance productivity, reduce variable costs, and implement structural cost-reduction initiatives. These efforts are aligned with the strategy we outlined in June, and I remain confident in achieving our fiscal year 2025 financial targets.”
Cost Initiatives
The company expects the benefits of cost actions to mitigate the effects of reduced demand throughout the remainder of fiscal 2023. These cost actions include:
Reduction in flight frequencies and temporarily parking aircraft;
Volume-related reductions in labor hours and other linehaul expenses;
Consolidation of certain sort operations to drive productivity;
Reduction of Sunday operations at a number of FedEx Ground locations;
Cancellation of certain planned network capacity and other projects;
Deferral of staff hiring;
Closure of over 90 FedEx Office locations; and
Identification of five corporate office facilities to be closed, with additional real estate rationalization planning under way.
Outlook
As a result of the preliminary first quarter financial performance and expectations for a continued volatile operating environment, FedEx is withdrawing its fiscal year 2023 earnings forecast provided on June 23, 2022.
While continuing aggressive cost reduction actions, the company expects business conditions to further weaken in the second quarter. For the second quarter of fiscal 2023, FedEx is currently expecting revenue of $23.5 billion to $24.0 billion, earnings per diluted share of $2.65 or greater, and earnings per diluted share excluding costs related to business optimization initiatives and business realignment activities of $2.75 or greater.
Anticipated capital spending for fiscal year 2023 has been revised to $6.3 billion, compared to the prior forecast of $6.8 billion.
The company reaffirms its previously announced plan to repurchase $1.5 billion of FedEx common stock in fiscal 2023. The company expects to repurchase $1.0 billion of FedEx common stock during the second quarter.
Photo: FedEx Express’ Memphis (MEM) cargo hub.
These forecasts assume the company’s current economic forecast and fuel price expectations, no additional COVID-19-related business restrictions, successful completion of the planned stock repurchases during the second quarter, and no additional adverse geopolitical developments. FedEx’s earnings per share forecast is based on current law and related regulations and guidance.
FedEx plans to provide additional details on its cost initiatives and updated outlook during its upcoming earnings call, scheduled for 5:30 p.m. EDT on September 22, 2022.
Transportation Segment Performance for the Quarter Ended August 31:
FedEx Express
(Adjusted measures exclude the items discussed below under “Reconciliations of Non-GAAP Financial Measures to GAAP Financial Measures.”)
FedEx Express has announced the launch of a new trans-Tasman service directly connecting Christchurch, Auckland and Melbourne, as trade between Australia and New Zealand continues to grow rapidly.
The new service will run five times a week between Christchurch-Auckland-Melbourne, adding to the existing five flights on the Sydney-Auckland-Sydney route each week.
Key benefits from the new trans-Tasman service for Australian and New Zealand businesses include:
More time for Melbourne customers to prepare shipments – The cut-off time for customers in Melbourne is now 5 p.m., a two-hour improvement.
Improved transit times – Customers in Christchurch will now have access to next-day International Priority shipping service to Australia, while those in Melbourne, Sydney and Brisbane who ship to Christchurch will see a one-day improvement for International Priority Freight services.
Acceptance of Dangerous Goods (DG) – New DG capability in Christchurch, New Zealand
Textron Aviation on May 9 announced the first delivery of the Cessna SkyCourier twin utility turboprop to FedEx Express. This is the first of 50 freighter aircraft that global logistics firm FedEx Express ordered as the Cessna SkyCourier’s launch customer. The clean-sheet aircraft achieved Federal Aviation Administration (FAA) type certification in March 2022.
The Cessna SkyCourier is designed and manufactured by Textron Aviation Inc.
In addition to the initial fleet order, FedEx Express has options for 50 more SkyCourier aircraft. Members of the FedEx Express design and engineering teams participated in Textron Aviation’s Customer Advisory Board to help shape the aircraft’s design, features and serviceability.
FedEx Corporation has announced its renewed commitment to Orbis International’s sight-saving mission with a US$3.5 million donation to help provide financial, logistics and operational support to the organization and its Flying Eye Hospital over the next five years.
The Orbis Flying Eye Hospital is a mobile teaching hospital that travels the world providing vision-saving eye surgeries and training to local eye care teams. Orbis’s cadre of more than 400 volunteer medical experts – including doctors, nurses, and others – carry out the trainings and procedures free of charge. FedEx donated the MD-10 aircraft and provides aircraft parts, maintenance, and pilot training at no cost to Orbis. The aircraft is flown by FedEx Express pilots who volunteer during their time off to navigate the plane around the world on Orbis missions. FedEx has supported Orbis for more than 33 years through more than US$27 million in donations and in-kind shipping.
Onboard a FedEx-donated MD-10 aircraft, Orbis’s iconic Flying Eye Hospital is the world’s only fully equipped ophthalmic teaching and training hospital. Orbis is a global organization that brings people together to fight avoidable blindness, restore vision, and help ensure no one loses their sight to preventable or treatable conditions. For nearly four decades, the Flying Eye Hospital has traveled the world delivering best-in-class training for eye care professionals in areas with the greatest need.
Last year, Orbis’s virtual Flying Eye Hospital projects had over 850 enrollments by participants from nine countries. Orbis expects to reach 20 countries through its virtual Flying Eye Hospital projects this year
These efforts are part of the FedEx Cares 50 by 50 campaign to positively impact 50 million people around the world by our 50th anniversary in 2023.
Atlas Air Worldwide Holdings, Inc. has announced its subsidiary Atlas Air, Inc. has entered into a long-term agreement with FedEx to provide two 747-400 freighter aircraft on a full-time aircraft, crew, maintenance and insurance (ACMI) basis. This new agreement is in addition to the company’s existing multi-year peak season contract that provides FedEx with a minimum of five aircraft during the fourth quarter.
Both 747-400 freighters have entered service and are flying on behalf of FedEx to support their growing express and e-commerce network.
“We are pleased to grow our long-term relationship with FedEx. This agreement reflects the continued strong demand for airfreight capacity, particularly in the express and e-commerce markets,” said John W. Dietrich, President and Chief Executive Officer of Atlas Air Worldwide. “Atlas is a leader in supporting express networks, with a focus on operating the most modern, fuel-efficient aircraft to deliver high levels of on-time performance for our customers.”
