FedEx Express (FX, Memphis International) is eliminating "multiple" international routes and considering aircraft retirements in excess of the original plan due to weak cargo demand, parent FedEx said in its financial release for the quarter ended on November 30, 2019.
"We are also taking immediate actions to address the short-term challenges facing our business, including eliminating multiple international flights to reflect reduced global air freight demand. These actions combined with benefits from the TNT Express integration should allow FedEx Express to enter fiscal 2021 with profit improvement underway," President and Chief Operating Officer Rajesh Subramaniam said.
During the quarter, the airline retired ten A310-300(F)s, recording an impairment of USD66 million. According to the ch-aviation fleets module, FedEx now operates just three remaining A310-300(F)s.
"During the remainder of fiscal 2020, FedEx Express will make further network capacity changes by reducing flight hours. The company continues to evaluate if additional aircraft retirements are warranted," the firm said.
FedEx posted a USD560 net income for September-November quarter of 2019, down by over 40% in comparison to the same period of 2018.