FedEx braces for 50% cut in Postal Service air contract

FedEx braces for 50% cut in Postal Service air contract

From the article: "...FedEx Corp. expects its air express unit will lose half of its business with the U.S. Postal Service when an existing contract expires, making more pilots expendable, FreightWaves has learned. The Postal Service three years ago began shifting a large amount of volume from air to ground transportation to reduce red ink and become more competitive. Declining postal volumes have been a significant drag on FedEx Express’ recent performance, company officials publicly acknowledge. ...loss of a substantial portion of Postal Service work means FedEx (NYSE: FDX) will have 200 to 300 more excess pilots by October, said the flight operations chief. The cargo airline plans to lower guaranteed flight hours for pilots and offer early retirement packages..."

Article Reference: www.freightwaves.com