Streamlining To Align With Anticipated Demand, Modernization Needs

FedEx Corporation announced it has permanently retired 12 aircraft during the fourth quarter and took a $21 million impairment charge in an effort to streamline its network and bring it into line with anticipated demand as well as modernize the fleet.

The express shipping company, based in Memphis, Tennessee, said the aircraft removed from service included seven Airbus A300-600s, three large MD-11 Tri-jet freighters, and two Boeing 757-200 freighters. The company also disposed of eight engines.

FedEx has reduced its fleet by a net 31 jets over the last three years, 7% less than in 2022. Chief Financial Officer said the company plans to lower aircraft investment to $1 billion in the current fiscal year and keep it at that level for several years.

The retirements bring FedEx’s fleet to 698 aircraft comprised of 382 mainline jets and 316 feeder planes operated by partner airlines. The company’s fleet size has been between 670 and 710 aircraft since 2018, and still has 90 757s, 34 MD-11s, and 58 A300-600s in service.

FedEx said in its March 20 earnings report that it exercised options to buy eight Boeing 777 freighters and moved back retirement of the MD-11 fleet from 2028 to 2032 due to strong parcel demand internationally. The company also announced plans to buy 10 more ATR 72-600 turboprops with deliveries scheduled near the end of the 2020s.

FMI:  www.fedex.com/