US' FedEx has permanently retired 22 of its 757-200 freighter aircraft and seven related engines as part of its fleet modernisation and downsizing efforts with capacity demand lowering. It was reported in its fourth quarter results ending May 31, 2024. The retirement resulted in a noncash impairment charge of $157 million.
As of its fourth quarter end, it had 92 757-200 in its fleet. It had also removed a further nine MD-11 freighters, totalling 31 aircraft removed from its fleet, and leaving it with 389 aircraft in its jet fleet overall. In 2022, it had 417 aircraft in its jet fleet.
""This reflects our strategy to continue to rightsize our air network capacity with demand and unlock additional operating efficiencies,"" said FedEx executive vice president and CFO John Dietrich in its earnings call.
In its fourth quarter results last year, it had included a noncash impairment charge of $70 million from its retirement of 18 aging MD-11 freighters and the 34 related engines.
It expects to retire a further 37 MD11 aircraft through to 2028 as it aims to move towards more fuel-efficient aircraft. It expects to take delivery of 11 767 freighter and two 777 freighter aircraft next year. A further three 767s are anticipated for 2026.
The United States Postal Service (USPS) had awarded UPS an air cargo contract in April 2024, making it USPS's primary air cargo provider, replacing FedEx. Dietrich noted that its second quarter results will be impacted by the loss of its USPS contract.
Its adjusted revenues for the fiscal period were $22.1bn, up from $21.9bn a year prior. Its adjusted operating income was $1.87bn, up from $1.77bn in fiscal year 2023.
The express transportation company also recently launched two new flights to the US from Qingdao and Xiamen, China on June 28, 2024.
FedEx retires 22 757-200 freighter aircraft
