FedEx Corp FDX has taken the step of reportedly recommending its pilots consider employment opportunities with a subsidiary of American Airlines Group, Inc. AAL.
This move reflects the changing dynamics within the cargo sector as it emerges from the pandemic-induced rush, reported Bloomberg.
In response to a noticeable dip in air cargo traffic industry-wide and an excess of flight operation personnel, FedEx is reportedly planning to steer its pilots towards a fresh career avenue with an American Airlines affiliate.
"Given the softness in air cargo demand across the industry and current FedEx flight operations staffing levels, we shared information about this unique opportunity with our pilots," according to the report, which cited a FedEx representative through email.
"Their recognition of the quality of our crew force is clear in this recruitment initiative that provides FedEx pilots an additional career path opportunity."
The report further noted that the courier and freight sector is currently navigating through a period of reduced parcel volume coupled with a shift back to more cost-effective maritime transport.
This transition is facilitated by the easing of previous shipping obstructions and the revival of long-haul flights, which afford additional space for cargo within passenger planes.
As a consequence, FedEx has adjusted its revenue forecast for 2024, projecting no significant growth as a result of the ongoing industry lull.
Price Action: FDX shares are trading lower by 1.14% at $244.32 on the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
