FedEx Targets More Airfreight From Parcel Customers

FedEx CEO Raj Subramaniam described efforts to expand airfreight business among customers that primarily use the company for parcel delivery. He cited a 15-fold increase in aircraft-engine moves as one example of the freight business FedEx has won.

Key details

• FedEx reported a 15% year-over-year increase in international airfreight daily freight pounds.
• The company said it secured airfreight business from an AI data-center customer after a relationship focused largely on parcels for more than 40 years.
• FedEx listed healthcare, aerospace, defense, automotive, and AI and data centers as target sectors.
• Third-quarter revenue reached $22.9 billion, up 12% year over year. Operating income was $1.2 billion, up 16%.
• Net income was $290 million, compared with $650 million in the prior-year period.

FedEx reported a 15-fold increase in aircraft-engine moves.

Why it matters

The customer example shows FedEx extending a long-standing parcel relationship into air cargo. Growth in international airfreight pounds and engine shipments points to business beyond the company’s core parcel flows, while its named target sectors include industries that move specialized freight.

What happens next

FedEx is pursuing more freight opportunities across healthcare, aerospace, defense, automotive, and AI data centers. Which of these sectors could bring the next major airfreight opportunity?