FedEx Parks Planes as Weak Demand Prompts Cost-Cutting Steps
- Courier’s cutbacks follow savings plan outlined in September
- Spending shift toward services came faster than expected: CFO
FedEx aircraft sit on the tarmac at the FedEx Express hub at Memphis International Airport in Memphis, Tennessee.
Photographer: Daniel Acker/BloombergThis article is for subscribers only.
FedEx Corp. has reduced the frequency of flights and parked some of its planes, following through on the courier’s plan to reduce costs in response to weak demand for package delivery.
The company has halted 23 domestic flights and about nine international ones, Chief Financial Officer Mike Lenz said Tuesday at the Baird 2022 Global Industrial Conference. FedEx has also reduced sorting points and consolidated loads at the Ground unit, he said.