Express giant FedEx has announced the order of eight Boeing 777 freighters and 10 ATR 72-600 turboprops as third-quarter profits and revenues both improved.
In an investor release, the company said that in March 2025 it had exercised options to purchase an additional eight 777F aircraft as part of its fleet modernisation programme.
Three of the aircraft are expected to be delivered in 2026 and the remaining five in 2027. It also agreed to purchase a further two of the model earlier in the quarter.
Meanwhile, the company said it would also extend the retirement of the entire Boeing MD-11 fleet from 2028 to the end of 2032. It had been gradually phasing out the aircraft to replace them with more fuel-efficient models, such as the 777F.
In total, FedEx currently operates 57 777 freighters and has a further 11 on order, including the 10 mentioned above. Its MD-11F stands at 37 aircraft.
Elsewhere, ATR today announced that FedEx has ordered 10 ATR 72-600 turboprop freighters to add to its existing order of 30 of the aircraft.
Deliveries are scheduled between 2027 and 2029. The aircraft boasts a volumetric capacity of 75 cu m, a 9.2 ton payload, a large cargo door, cargo loading system and wide cross section. The model can also handle ULDs.
Currently, 23 of the 40 ATR-600Fs ordered by FedEx have been delivered.
Results round-up
Looking at financial performance for the firm’s third quarter running to 28 February, revenues increased by 2.3% year on year to $22.2bn, operating income improved by 4% to $1.3bn and net income was up 3.4% to $910m.
“The FedEx team delivered improved profitability while navigating a very challenging operating environment, including a compressed peak season and severe weather events,” said Raj Subramaniam, FedEx Corporation president and chief executive.
Federal Express segment operating results improved during the quarter, driven by cost reduction benefits from its Drive cost-saving programme, higher base yield, and increased US and international export volume.
The increased volumes were driven by higher demand for deferred services and higher base yield. However, the weak industrial economy continues to constrain demand for priority package and B2B services.
The drive programme delivered $600m in savings during the quarter, FedEx said.
These factors were partially offset by higher wage and purchased transportation rates, as well as the expiration of the US Postal Service contract.
FedEx Freight segment operating results decreased during the quarter due to lower fuel surcharges, reduced weight per shipment, and fewer shipments, partially offset by higher base yield.
The company added that global trade policies are adding uncertainty to demand, but it believes it has a ”flexible global network, digital tools, and data ecosystem [that] enable us to adapt”.
Damian has been writing about the freight and logistics industry since 2007 when he joined International Freighting Weekly to cover the shipping sector. After a stint in PR, he went on to work for Containerisation International and Lloyd’s List - where he was editor of container shipping - before joining Air Cargo News in 2015.View full profile
