FedEx’s Fourth Fiscal Quarter Key Figures
At FedEx Express air and international unit, flight hours slipped 12% in the quarter, which exceeded the volume decline.
Corporate Staff Changes
In a separate announcement, FedEx announced that CFO Michael Lenz will retire on July 31st. Lenz will be present until the year-end to ensure a smooth transition of his successor who is still unknown.
Flattish Fiscal 2024 Guidance
Flat low-single-digit revenue growth is expected in the new fiscal year that kicked off on June 1st, with $1.8 billion in permanent savings out of $4 billion in savings in this fiscal year and the following. Margin improvements at its Express and Ground units are expected, while freight margins are expected to remain under pressure throughout the year and especially during the undergoing quarter.
Following the two-year of skyrocketing demand created by the pandemic, the industry is dealing with a package volume decline and therefore, lowering costs is the logical way to go. As it grapples with this challenging new reality of weakened demand, FedEx is taking this road to improve its profitability.
US Largest Single-employer Strike Is Looming Over UPS
If UPS does not make an agreement with the Teamsters union, more than 340,000 UPS workers are threatening to strike over pay, hours and working conditions. If it takes place, it would be the largest single-employer strike in US history. As a reminder, the 1997 UPS strike that gathered 185,000 workers resulted in 15 days of standstill operations that slashed deliveries, overwhelmed FedEx and the US Postal Service and caused massive damage to US businesses.
The Worst-case Scenario
DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
To add Benzinga News as your preferred source on Google, click here.
