FedEx Retires 15 Cargo Planes, Takes $246 Million Charge
FedEx Corp. said it has retired 15 aircraft and 21 engines and that it recorded a non-cash impairment charge of $246 million in May.
The retirements came as FedEx “continues to rationalize capacity and modernize its aircraft fleet to more effectively serve FedEx Express customers,” the company said in a statement.
The aircraft include seven MD11 planes and 12 engines; three A300 planes and three engines; four A310-300 planes and three related engines; and one MD10-10 plane and three engines. As of the end of February, FedEx Express’s fleet totaled 673 aircraft, including 383 jets.
FedEx also adjusted the retirement schedule of an additional 23 planes and 57 engines, for which it took a $30 million cash charge in May, but said the “combined retirement changes will not have a material impact on near-term depreciation expense.”
FedEx Corp. ranks No. 2 on the Transport Topics Top 100 list of U.S. and Canadian for-hire carriers.
