FedEx Freight Assessment Adds to Air Network Review to Match Demand

FedEx’s review of its freight business comes as the company also reviews its air network capacity to better align air network capacity with demand. FedEx is permanently closing several facilities to match capacity with demand and conducting the assessment of FedEx freight to determine the role that it plays in its overall portfolio structure. The review is expected to deliver results by the end of the year. Investors will want to see the expenses that will come with the freight assessment. In its fiscal 4Q, FedEx said that its results included a noncash imparment charge of $157 million from the decision to permanently retire 22 Boeing 757-200 aircraft and seven related engines. Shares jump 15% in after-hours trading.

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