FEDEX

FedEx’s new deal comes nearly six years after its express business dropped Amazon, and about four months since archrival UPS cut its Amazon business in half

FedEx Corp  lowered its full-year profit and revenue forecasts on Thursday, as the parcel delivery firm battles stubbornly soft demand and uncertainty in the U.S. industrial economy as President Donald Trump imposes tariffs on trading partners.

With the Postal Service contract migrating to UPS, FedEx has reportedly aligned its operations by reducing U.S. domestic flight hours by 24% during the fiscal year second quarter

FedEx Corp. plans to significantly slash daily flights and the number of U.S. cities served by air during the daytime when its air cargo contract with the U.S. Postal Service expires on Sept. 29, resulting in significant pay cuts for pilots, senior managers informed crews this week.

The delivery giant is preparing to aggressively reduce Postal Service-related costs following the contract’s Sept. 29 expiration to minimize the impact to its bottom line.

“We are going to continue to have a daytime operation, and we’ve some great customers on that,” the CFO said. “And will we do as much as we are doing with the U.S. Postal Service? Probably not. But we are going to continue to rationalize the network, and there’s a lot of great work going on in that area.”

The latest data from law firm Culhane PLLC has revealed FedEx remained the top supplier for the United States Postal Service (USPS) with US$1.6bn in revenue for fiscal year 2023

Daytime flight operations and pilot staffing are likely targets for reductions once the air transportation contract expires in September, experts say.