On Tuesday's earnings call, CEO Raj Subramaniam stated that the Express segment will park 20 aircraft in the fiscal year 2024 and permanently retire nine additional MD-11 freighters. However, according to the most recent fleet data, the integrated logistics and parcel carrier's mainline fleet will actually expand by 10 aircraft this year as Boeing jets bought years ago get delivered.
FedEx Express retired 18 planes in the fiscal year just ended, including 12 MD-11s, four Boeing 757-200s, and two Airbus A300-600s. FedEx deducted the planes' $70 million book value plus 34 associated engines from their fourth-quarter earnings.
During the fourth quarter, FedEx cut worldwide flying hours by 12% year on year. The overall fleet size declined by 10 units during the fiscal year, offset by the addition of 14 factory-built Boeing 767-300 freighters and two Boeing 777s.
FedEx now owns 700 aircraft, including 407 mainline planes and 293 feeder planes, 14 more than the previous year. FedEx presently operates 46 MD-11s, which will be retired by fiscal 2028.