FedEx buys Boeing 777 and ATR cargo planes, delays MD-11 retirements

From Yahoo Finance: 2025-03-21 14:07:00

FedEx is extending the service life of two MD-11 cargo jets at Los Angeles International Airport due to increased international nonparcel freight demand. The company has exercised options to buy eight Boeing 777 freighters and 10 ATR 72-600 turboprop freighter aircraft. FedEx will now retire the MD-11 fleet in 2032, and has also purchased two used 777 freighters. This decision comes as FedEx restructures its air network to better compete for deferred cargo business and capture more of the airfreight market. The changes have already boosted the Express segment’s operating income by 17% in the third quarter. FedEx plans to delay the retirement of two MD-11 cargo jets at Los Angeles International Airport and extend their service life. The international economy package volume increased by 48% in the third quarter, boosting airfreight average daily pounds by 3%. FedEx acquired 777 production freighters due to Boeing’s competitive pricing before closing the production line in 2027. The ATR order adds to FedEx’s commitment for 30 aircraft, with 23 delivered so far. The ATR 72-600 can carry 10 tons and will replace older ATR 72 aircraft in FedEx’s fleet. FedEx aims to contain capital expenditures despite aircraft acquisitions.



Read more at Yahoo Finance: FedEx orders Boeing 777 and ATR cargo aircraft, delays MD-11 retirements