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FedEx Corp. Accelerates Aircraft Retirements

Posts $276 Million Impairment And Related Charges In FY15

FedEx Corp. has permanently retired 15 aircraft and 21 related engines as it continues to rationalize capacity and modernize its aircraft fleet to more effectively serve FedEx Express customers.

The permanent retirement of aircraft and related engines includes:

  • Seven MD11 airframes and 12 related engines;
  • Three A300 airframes and three related engines;
  • Four A310-300 airframes and three related engines; and
  • One MD10-10 airframe and three related engines.
  • The impact of retiring these aircraft, engines and related parts resulted in a non-cash impairment charge of $246 million recorded in May 2015.

FedEx has also adjusted the retirement schedule of an additional 23 airframes and 57 engines. FedEx also recognized in May 2015 $30 million in cash charges associated with these actions. These combined retirement changes will not have a material impact on near-term depreciation expense.

FMI: www.fedex.com

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