Category Archives: FedEx Express

FedEx CEO says he expects the economy to enter a ‘worldwide recession’


  • “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
As Reported (GAAP) Adjusted
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.



  • 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.”)


Fiscal 2023 Fiscal 2022
As Reported (GAAP) Adjusted
As Reported (GAAP) Adjusted
Revenue $11.1 billion $11.1 billion $11.0 billion $11.0 billion
Operating income $174 million $188 million $567 million $660 million

FedEx Ground

Fiscal 2023 Fiscal 2022
As Reported (GAAP) As Reported (GAAP)
Revenue $8.2 billion $7.7 billion
Operating income $694 million $671 million


FedEx Freight

Fiscal 2023 Fiscal 2022
As Reported (GAAP) As Reported (GAAP)
Revenue $2.7 billion $2.3 billion
Operating income $651 million $390 million

FedEx Express aircraft photo gallery:

FedEx expands cargo capacity between Australia and New Zealand

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

FedEx Express aircraft photo gallery:

FedEx Express takes delivery of first Cessna SkyCourier

Play Video


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 donates $3.5 million to Orbis in support of sight-saving ‘Flying Eye Hospital’

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 now operates two Boeing 747-400Fs for FedEx Express

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.”

FedEx Express to add Paine Field in the north Seattle area

FedEx Express Boeing 757-23A (F) N938FD (msn 24292) ONT (Michael B. Ing). Image: 954655.

FedEx Express will expand its Seattle-area operations with a new ramp operation at Paine Field Snohomish County Airport in Everett, Wash., beginning in the fall of 2021.

A new daily Boeing 757-200 flight will operate Monday through Friday between Paine Field and the FedEx Express World Hub in Memphis, Tenn. offering north Seattle-area customers in 37 ZIP codes extended pickup times by up to two hours. The new flight will also offer earlier market delivery times, additional dry ice capabilities, and increased overall market capacity.

FedEx will occupy a 19.24-acre, 68,745-square foot facility, and the grounds offer the ability to expand with additional gates.

Top Copyright Photo: FedEx Express Boeing 757-23A (F) N938FD (msn 24292) ONT (Michael B. Ing). Image: 954655.

FedEx Express slide show:

FedEx Express operates the last MD-10-10F revenue flight, delivers 1.35 million COVID-19 doses to Mexico

FedEx Express operated the last McDonnell Douglas MD-10-10 (F) (converted and upgraded DC-10-10) revenue cargo flight with N562FE on June 2, 2021 between San Juan and the Memphis hub. All aircraft are now in storage awaiting disposal.

FedEx Express McDonnell Douglas MD-10-10F (DC-10-10F) N559FE (msn 46930) ONT (Michael B. Ing). Image: 946789.

Above Copyright Photo: FedEx Express McDonnell Douglas MD-10-10F (DC-10-10F) N559FE (msn 46930) ONT (Michael B. Ing). Image: 946789.

In other news, FedEx also delivered 1.35 million COVID-19 doses to Mexico. The company made this announcement:

FedEx Express, a subsidiary of FedEx Corp. and the world’s largest express transportation company, on June 15 announced that it has safely delivered 1.35 million Johnson & Johnson COVID-19 vaccine doses to Toluca, Mexico, in coordination with Direct Relief and the United States and Mexican governments.

The delivery marks the first shipment of vaccines for Direct Relief and FedEx and the first COVID-19 vaccine delivery by FedEx into Mexico. As an integral part of the global vaccine supply chain, FedEx is delivering COVID-19 vaccines, related ingredients, and supplies to 40 countries throughout the world. FedEx Express moved the vaccine shipment from Memphis, TN, to Toluca, Mexico, via FedEx International Freight® supported by FedEx Priority Alert® advanced monitoring.

FedEx has delivered more than 13,000 COVID-19-related charitable shipments since January 2020, and the company has committed $4 million in cash and in-kind transportation support to nonprofits serving communities in the U.S. and around the world including Direct Relief.

Since the pandemic began, FedEx has moved more than 90 kilotons of personal protective equipment (PPE) around the world. In addition to widespread delivery throughout the U.S. and Canada, FedEx is also delivering COVID-19 vaccines to U.S. service members at military bases overseas for the Defense Logistics Agency, and is working closely with the Canadian government and healthcare companies to ship COVID-19 vaccines to Canadians living abroad.

FedEx will continue to deliver lifesaving medicine, personal protective equipment, and other critical supplies until this pandemic is over. The movement of vaccines and relief is aligned with the FedEx Cares 50 by 50 goal to positively impact 50 million people around the world by the company’s 50th anniversary in 2023. Learn more about FedEx COVID-19 vaccine and relief delivery here.

Empire Airlines takes delivery of its first ATR 72-600F

Empire Airlines (Idaho) (Coeur d’Alene) has announced on social media it has taken delivery of its first ATR 72-600F (N701FE) which was delivered and ferried from Toulouse to Spokane on May 24-26, 2021.

Empire’s announcement:

Empire Airlines is excited to be first in the nation to take delivery of the new FedEx ATR 72-600F. This is the second ATR 72-600F to roll off the assembly line. Empire Airlines was chosen as the US launch operator for this aircraft.

Route Map:


FedEx becomes Official Sponsor of the UEFA Champions League, celebrates the 100th Boeing 767

"100th Boeing 767 FedEx" special logo

FedEx Corporation and UEFA have signed a three-year agreement in which FedEx will sponsor the UEFA Champions League commencing at the start of the 2021/22 tournament and extending for three editions through to 2023/24. The agreement also includes sponsorship rights for the UEFA Super Cup, UEFA Youth League finals, the UEFA Champions League Futsal finals and UEFA eChampions League.

The sponsorship builds on the existing relationship with UEFA. FedEx became a main sponsor of the UEFA Europa League in 2015 and a UEFA National Team Football sponsor in 2019.  FedEx is also the Official Logistics Partner of UEFA EURO 2020 taking place in the summer of 2021 across multiple European host cities.

This new sponsorship of the UEFA Champions League reaffirms FedEx as a long-standing sponsor of UEFA.

In 2016, FedEx became the first sponsor to begin collaborating with the UEFA Foundation for Children, using football as a tool to deliver positive and social impact in communities around the world. Alongside sponsorship of the UEFA Europa League and UEFA EURO 2020, FedEx and the UEFA Foundation have delivered safe community football fields in Spain, Poland, Brazil, and South Africa and have rolled out a co-funded “Football for Employability” program benefitting young adults in Romania, Hungary, England and Ireland. FedEx also invited local children to be player mascots at UEFA Europa League finals in collaboration with non-profit organizations in Stockholm (Sweden), Lyon (France) and Baku (Azerbaijan), where an all-girl player mascot line-up made footballing history.

“Our global sponsorship of UEFA Champions League will deliver unrivalled opportunities for our brand, team members, customers, and communities. Aligning our brand with world class sports performance allows us to connect our services to our audiences through the passion and emotions generated by sports and enables us to contribute positively to our local communities,” said Brie Carere, executive vice president, chief marketing and communications officer, FedEx Corp.

“We’ll continue to explore powerful social responsibility collaborations with the UEFA Foundation for Children, as we have done throughout our UEFA Europa League sponsorship.”

“FedEx has proved to be an incredibly valued UEFA partner. We are delighted they are continuing their evolution with us, which started in 2015 and now sees them supporting our flagship club competition, the UEFA Champions League,” said UEFA marketing director Guy-Laurent Epstein. “The UEFA Champions League is the world’s greatest club competition, and we are looking forward to working with FedEx closely over the next three years to help them activate their numerous projects. They will benefit not just the footballing community, but also look to have a positive impact on the environment”.

In other news, the company is preparing to take delivery of the 100th Boeing 767. N277FE carries this special logo on the rear fuselage.

Top and Above Copyright Photo: FedEx Express Boeing 767-300F ER N277FE (msn 66246) (100th Boeing 767 FedEx) PAE (Nick Dean). Image: 953640.

FedEx aircraft slide show: