Dive Brief:
- FedEx plans to return its full Boeing MD-11 aircraft fleet back to service before peak season, CEO Raj Subramaniam said during a June 23 earnings call.
- FedEx’s MD-11 fleet was grounded last year following a deadly crash of an MD-11 aircraft operated by UPS. Prior to the grounding, 25 of the carrier's 34 MD-11s were in operation.
- The company began returning its MD-11 fleet to service last month after working with Boeing, the Federal Aviation Administration and the National Transportation Safety Board, Subramaniam told analysts. Four MD-11s have resumed flight, he added.
Dive Insight:
FedEx had to outsource capacity during peak season last year after its fleet was grounded in November 2025. Instead, the carrier leaned on its commercial airlift partners to help limit disruptions, which led to a $120 million headwind due to higher operating costs and lower revenue, former EVP and CFO John Dietrich told analysts in March. Dietrich added that FedEx expected an up to $55 million year-over-year headwind in Q4 as the carrier returns its MD-11 aircraft to service.
FedEx has been targeting a more efficient global network to better align its capacity with anticipated demand. The company launched its “Tricolor” initiative in 2023 as part of the reconfiguration, dividing FedEx's air network into three sections.
Earlier this month, FedEx announced plans to share air network resources with China Southern Air Logistics to bolster connectivity and reliability. The agreement aims to explore opportunities across cargo space, routes, fleet, operations and digitalization. FedEx’s hub at Guangzhou Baiyun International Airport (CAN) handles intra-Asia express package and freight shipments, and more.
As part of the fleet reduction and modernization strategy, FedEx plans to retire its entire fleet of 34 MD-11s by 2032, as of the company’s 2025 annual report. FedEx retired 10 jet aircraft in Q4, including five MD-11s, CFO Claude Russ told analysts this month.
“These actions are aligned with our Tricolor and Network 2.0 strategies to drive improved efficiency and density across both our global air network and North American surface operations,” the CFO said.
