Nine MD-11s will leave the FedEx fleet as a result of the plan.
FedEx issued its most recent financial results on June 20th, citing “ongoing demand weakness.” The freight mover claimed that both sluggish demand and cost increases were to blame for the performance seen in its most recent fiscal quarter. The company’s strategy to deal with this includes cutting expenditures and putting some of its fleet into storage.
The freight boom slows down.
The epidemic brought to light the significance of strong and trustworthy supply systems. As a result, many organizations entered the air cargo industry or expanded their position there. For instance, Air Canada turned some of its decommissioned passenger Boeing 767-300ERs into freighters. The airline also placed a direct order with Boeing for brand-new freighters.
FedEx had been considering placing a sizable freighter order with Boeing or Airbus as recently as February 2022. Of fact, the market’s change may have delayed this potentially significant deal. In fact, air cargo capacity in those jets’ belly compartments has returned as supply lines gradually reopen and passenger aircraft begin to fly again. In fact, an IATA study from May 2023 states that the increase in belly capacity has led to a 2.3% decrease in cargo capacity. Additionally, activities in this area came to an end in March after two and a half years of nonstop preighter operations. 29 airplanes will be retired or stored by FedEx over the coming year.
FedEx is directly seeing this change in market demand. The company said in its most recent quarterly report:
To lessen the impact of persistent demand weakness, FedEx Express “continues to implement volume-related and structural cost-reduction actions, including further flight hour reductions and the early retirement of certain aircraft and related assets.”
FreightWaves claims that over the upcoming year, FedEx will cut its operational expenses by retiring 29 of its fleet’s aircraft. As a result, aircraft will either be permanently retired or stored temporarily. This action complements the operator’s recent decrease in global flight hours. FedEx CEO Raj Subramaniam elaborated on this proposal, saying that 20 aircraft will be stored over the course of the following year while an additional nine MD-11 freighters would be permanently retired. The company’s most recent aircraft retirement initiatives, which have already resulted in the retirement of the following 18 aircraft during the past year, are built upon by this.
12x MD-11s
Four 757-200s
Airbus A300-600s twice
FedEx currently operates 46 MD-11s, although these will eventually be phased out by 2027 or 2028.
The FedEx mainline fleet will nevertheless experience some expansion even if many older freighters will be grounded or retired. This is a result of ongoing orders Boeing received in 2018. FedEx will continue to work with ch-aviation.com to receive brand-new, factory-built 767 and 777 freighters, stating that the business anticipates 23 additional 777Fs and six additional 767Fs.
