FedEx Express

FedEx officials said that it has had a 30-year relationship with Flying Cargo Group, adding that this agreement was reached at the time that the service agreement between the companies was set to expire. And they added that this agreement is expected to be made official during the first half of 2019 and subject to regulatory approval.

Earlier this week, FedEx Express, the air cargo subsidiary of FedEx, announced it has rolled out a new dedicated flight that four times a week that will move between Sydney, Australia and Singapore. Company officials said that this new offering is past of FedEx’s continued investment to boost its operational network and help Asia Pacific-based shippers expand globally.

While air cargo volumes continue to stage a modest uptick, shippers are now waiting to see how the introduction of larger freight aircraft might serve to sustain this growth. At the same time, shippers need to keep an eye on which domestic airports are prepared to handle more capacity and the new demands driven by e-commerce.

FedEx subsidiary FedEx Express announced this week that it has rolled out a new flight into and out of Hanoi, Vietnam, which will connect the country’s capital to the FedEx APAC (Asian Pacific) hub based in Guangzhou, China.

Transportation and logistics bellwether FedEx yesterday announced rate increases for various business lines, including FedEx Express, FedEx Ground, and FedEx Freight, which will take effect on January 1, 2018.

Earnings per share for the fiscal fourth quarter at $4.25 on an adjusted basis were well ahead of Wall Street estimates of $3.88 and up 22.4% annually. Revenue was up 17.2% at $15.7 billion, and operating income at $1.76 billion was up 14.3%. For Fiscal Year 2017, revenue at $60.3 billion was up 16.5%, and operating income was up 8.6% at $5.48 billion.

Effective early next month, FedEx Express, a subsidiary of FedEx will roll out a new flight that connects the Liège, Belgium-based TNT European air hub to the Memphis, Tenn.-based FedEx World Hub, the company said this week.

Earlier this week, FedEx and the United States Postal Service (USPS) said they have entered into an agreement to extend their air transportation contract, which was originally executed on April 23, 2013, through September 29, 2024.

Quarterly revenue at $14.93 billion was up 16.6 percent annually, operating income at $1.167 billion was up 2.6 percent, and net income at $700 million was up 1.3 percent. Earnings per share at $2.80 were up 7.9 percent annually but did not meet Wall Street expectations of $2.91 per share.

Quarterly net income at $691 million was up 4 percent annually, and revenue at $12.5 billion was up 4.8 percent. Operating income at $1.14 million was up 4.4 percent. Quarterly operating margin—at 9.1 percent—was flat, and adjusted earnings per share of $2.58 were up nearly 16 percent and ahead of Wall Street estimates of $2.51 per share.

Rate increases will take effect for FedEx Express U.S. domestic, U.S. export, and U.S. import services, effective January 4, 2016. FedEx Express will increase shipping rates by an average of 4.9 percent for U.S. domestic, U.S. export and U.S. import services, and FedEx Ground and FedEx Home Delivery will increase shipping rates by an average of 4.9 percent. FedEx SmartPost rates will also change. And FedEx Freight will increase shipping rates by an average of 4.9 percent.

Transportation and logistics bellwether FedEx said yesterday it has agreed to acquire 50 Boeing 767-300 freighters, according to various media reports.

Quarterly net income of $580 million was up 53 percent annually, and revenue, at $11.7 billion, was up 4 percent. Operating income at $962 million was up 50 percent.

Earlier this week, FedEx said it is expanding its International First service for early deliveries with the addition of 31 new origin countries, which will bring the total number of origin markets for the service to 97.