Tag Archives: Airbus A300F

FedEx Corporation reports net income of $616 million, up 23% from last year’s $500 million

FedEx Corporation (FedEx Express) (Memphis) reported earnings of $2.14 per diluted share for its fiscal second quarter ended November 30, up 36% from last year’s $1.57 per share. The corporation reported net income of $616 million, up 23% from last year’s $500 million. However the corporation missed several analyst profit estimates despite declining fuel costs.

The company issued this statement:

“FedEx posted strong results and a higher operating margin in the second quarter, with continued growth in volumes and base yields in each of our transportation segments”

“FedEx posted strong results and a higher operating margin in the second quarter, with continued growth in volumes and base yields in each of our transportation segments,” said Frederick W. Smith, FedEx Corporation chairman, president and chief executive officer. “We are in the final stages of this year’s peak shipping season, and I’d like to thank the more than 300,000 dedicated team members around the world for once again delivering outstanding service to our customers during the holidays.”

Second Quarter Results

FedEx Corp. reported the following consolidated results for the second quarter:

• Revenue of $11.9 billion, up 5% from $11.4 billion the previous year

• Operating income of $1.01 billion, up 22% from $827 million last year

• Operating margin of 8.5%, up from 7.3% a year ago

• Net income of $616 million, up 23% from last year’s $500 million

Operating income and margin increased primarily due to higher volumes and base yields in all three transportation segments. Results in the second quarter also included benefits from the company’s profit improvement programs, lower pension expense and a slightly positive net impact from fuel. These benefits were partially offset by higher aircraft maintenance expense due to the timing of aircraft maintenance events.

Share repurchases benefited second quarter earnings by $0.16 per diluted share.

Outlook

The company reaffirms its fiscal 2015 earnings forecast of $8.50 to $9.00 per diluted share. The outlook assumes continued moderate economic growth and a modest net benefit from fuel. The capital spending forecast for fiscal 2015 remains $4.2 billion.

Fuel Surcharges

FedEx regularly reviews its fuel surcharge tables and will update certain tables at FedEx Express, FedEx Ground and FedEx Freight effective February 2, 2015. Details on these changes will be available on fedex.com by December 23, 2014.

FedEx Express Segment

For the second quarter, the FedEx Express segment reported:

• Revenue of $7.02 billion, up 3% from last year’s $6.84 billion

• Operating income of $484 million, up 36% from $357 million a year ago

• Operating margin of 6.9%, up from 5.2% the previous year

Revenue increased due to higher U.S. domestic package volume and international export package base revenue, partially offset by lower fuel surcharges and exchange rates. U.S. domestic package volume grew by 7%, including a 10% increase in U.S. overnight box. U.S. domestic revenue per package declined 2% due to decreased fuel surcharges and lower weight.

FedEx International Economy® volume grew 5%, while FedEx International Priority® volume increased 1%. International export revenue per package was flat, as higher rates were offset by unfavorable currency exchange and lower fuel surcharges.

Operating results improved due primarily to U.S. domestic and international export package revenue growth, cost management related to profit improvement programs, lower pension expense and a slight net benefit from fuel. These improvements were partially offset by the timing of higher aircraft maintenance expense. The year over year increase in aircraft maintenance expense is expected to subside beginning in the fourth fiscal quarter.

FedEx Ground Segment

For the second quarter, the FedEx Ground segment reported:

• Revenue of $3.06 billion, up 8% from last year’s $2.85 billion

• Operating income of $465 million, up 6% from $439 million a year ago

• Operating margin of 15.2%, down from 15.4% the previous year

FedEx Ground average daily volume grew 5% in the second quarter, driven by growth in both business-to-business and FedEx Home Delivery services. Revenue per package increased 3% due to rate increases and higher residential surcharges. FedEx SmartPost average daily volume decreased 4% due to the reduction in volume of a major customer. FedEx SmartPost revenue per package increased 7% due to rate increases and improved customer mix, partially offset by higher postage rates.

Operating income increased due to higher revenue per package and volume, partially offset by higher network expansion costs, as the company continues to heavily invest in the FedEx Ground and FedEx SmartPost businesses.

FedEx Freight Segment

For the second quarter, the FedEx Freight segment reported:

• Revenue of $1.59 billion, up 11% from last year’s $1.43 billion

• Operating income of $112 million, up 35% from $83 million a year ago

• Operating margin of 7.1%, up from 5.8% the previous year

Less-than-truckload (LTL) average daily shipments increased 8%, including a 10% increase in demand for Priority service. LTL revenue per shipment grew 3% due to higher weight per shipment, higher rates and increased fuel surcharges.

Operating results improved due to increased LTL revenue per shipment and higher average daily LTL shipments.

Copyright Photo: Jay Selman/AirlinersGallery.com. Monday, December 15, was the busiest day for FedEx in its history according to the company. Cutting through the early morning mist at Charlotte is Airbus A300B4-622R (F) N719FD (msn 388) bound for the Memphis cargo hub.

FedEx Express aircraft slide show:

 

UPS’ pilots issue this statement regarding its unresolved contract and the upcoming holiday rush

UPS Airlines’ (United Parcel Service) (Atlanta and Louisville) pilots, represented by the Independent Pilots Association, have issued this statement:

“Will United Parcel Service deliver this Christmas? That’s the question that manufactures, shippers, retailers and consumers have been asking. While we can’t speak to all aspects of UPS’s operations we can say that despite UPS not finalizing our contract we remain committed to delivering this Christmas season,” said Independent Pilots Association spokesperson Brian Gaudet.

Gaudet went on to say, “UPS has done a lot to avoid a repeat of last year’s holiday delivery troubles: it developed and funded a $175 million Peak Plan; finalized its labor contract with the Teamsters; increased its seasonal hires by seventy-three percent. But UPS didn’t do everything it needed to; UPS neglected its air operations by not finalizing the contract with its pilots. We are now in our fourth-year of contract talks with UPS. In spite of this drawn out negotiation, the IPA remains committed to delivering this holiday season. But we encourage UPS, for the benefit of its customers, to close out this critical unfinished business.”

To help make this point the IPA has taken out full-page ads in the Asian, European and Eastern U.S. editions of the October 24 issue of the Wall Street Journal (below).

The Independent Pilots Association represents the professional pilots flying for United Parcel Service.

Top Copyright Photo: TMK Photography/AirlinersGallery.com. Airbus A300F4-622R N164UP (msn 853) completes its final approach to the runway at Toronto (Pearson).

UPS: AG Slide Show

Ad appearing in the Wall Street Journal:

UPS IPA ad in the WSJ (LR)

 

UPS pilots want cargo pilots to be included in Part 117 regulations due to crew fatigue

UPS Airlines’ (United Parcel Service) (Atlanta and Louisville) pilots, represented through the Independent Pilots Association, have issued this statement concerning the current regulations excluding cargo pilots from Federal crew rest standards:

On the eve of the first anniversary of the fatal crash of United Parcel Service Flight 1354, UPS pilots are calling for an end to the carve-out of all-cargo airline operators from FAR Part 117, the new pilot rest and operating rules enacted by Congress. On August 14, 2013, at 4:47 AM CDT, UPS Flight 1354 crashed on approach to Birmingham-Shuttlesworth International Airport, killing Captain Cerea Beal, Jr. and First Officer Shanda Fanning.

“What we didn’t know then, but suspected, was the role fatigue played in this accident,” said Captain Robert Travis, President of the Independent Pilots Association. “Once the Cockpit Voice Recorder transcripts were released there was no doubt. Cerea and Shanda told us on the CVR* that they were fatigued and wanted one level of safety in commercial aviation.”

Part 117, which became effective for passenger carriers on January 4, is the first major revision of pilot flight and duty limits and rest requirements in 60 years. This new rule is science-based and designed to mitigate fatigue among commercial pilots. Disturbingly, all-cargo airlines are carved out of Part 117 for “political” reasons, as noted last week by the FAA’s Federal Air Surgeon, Dr. James Fraser.

“This carve-out puts our nation’s entire aviation system at risk,” said Jim Hall, former Chairman of the National Transportation Safety Board. “A tired pilot is a tired pilot, regardless of the plane he or she may be flying. By excluding cargo pilots from Part 117, the FAA is failing to adhere to its mission of making safety the first priority in aviation. If the FAA believes even one life lost in an accident is too many, the principle should also apply to cargo pilots.”

From the moment the FAA announced the cargo carve-out, the IPA has fought to reverse it. This includes suing the FAA.

“We had no choice but to lead this fight,” said Travis. “The crash of UPS Flight 1354 has intensified our efforts. Tragically, Capt. Beal said to our Scheduling Committee Chairman just before the fatal flight, ‘these schedules over the past several years are killing me.’ We owe it to Cerea and Shanda, their families and every pilot, whether flying passengers or packages, to end this dangerous exclusion. As we mark this difficult anniversary, I call on the FAA to end the cargo carve-out and apply one level of safety to all commercial aviation.”

Copyright Photo: Ken Petersen/AirlinersGallery.com. Airbus A300F4-622R N155UP (msn 841) crashed on August 14, 2013 while on approach from the north to Birmingham-Shuttlesworth International Airport, Birmingham, Alabama. The crew was operating cargo flight 5X 1354 from the Louisville hub to Birmingham. N155UP is pictured on the cargo ramp at New York’s John F. Kennedy International Airport before the tragic accident.

UPS: