FedEx orders 20 Boeing 767Fs to meet e-commerce demand

FedEx Express - Boeing 767-300 (N124FE) - Photo by Alex Peake - AirTeamImages.com 

Over the next year, FedEx Express plans to add 20 - Boeing 767F to its fleet, primarily for the demand for e-commerce that has seen exponential growth this year. Another factor is the transport of essential cargo such as vaccines, syringes, medical supplies, etc. 

With a profit target of $7.2 billion by 2022, the Memphis-based cargo airline intends to acquire 20 additional Boeing 767F aircraft plus 10 more aircraft to be delivered in late 2025. 

FedEx's investments go beyond its aircraft fleet, but with investments in more than 16 automated facilities and the execution of 100 projects about base expansion.

FedEx Express Cargo Ramp - AirTeamImages.com 

Also, according to FedEx, commercial cargo volume has surpassed pre-pandemic levels and is one of the fastest-growing years in a decade. The cargo airline also believes that "favorable" global pricing will continue into the end of the next year. Something that encourages investors and cargo airlines to invest even more. But the company believes in a full recovery of the sector only in 2024.

In the fourth quarter of 2021, FedEx's revenue was $22.6 billion higher compared to $17.4 billion last year in the same period. The company's operating revenue topped $1.8 billion, up from the $475 million a year ago.

FedEx attributes the growth primarily to increased demand for cargo, followed by efficient management of the company's revenue and product portfolio. 

FedEx Ground, a FedEx subsidiary in ground transportation, usually long-haul truck transportation, achieved a record profit for the quarter on revenue growth of 27%, growth due to strong demand in B2B shipments, and a 14% increase in parcel orders.

Amazon examines its delivery providers’ performance each year to determine order cut-off times for the holidays. (Brittainy Newman / The New York Times)

The high demand in the sector is mainly due to air cargo transport, due to e-commerce on the rise, and the transport of vaccines, consumables, medical supplies, and other types of cargo. E-commerce has had astonishing growth, which has corroborated with the growth of the company. 

According to FedEx CEO Fred Smith: "To handle future demand volumes, we are significantly increasing our ability to provide better service and to improve our financial bottom line further. This summer, we are focused on improving our network and delivery operations ahead of winter volume."

With record profits and an operating margin of 16.6% in the quarter, as daily package shipments grew 30% and seeing a 6% increase in revenue, FedEx intends to invest even more.

FedEx Express flight statistics - June 19-25 on AirNav RadarBox

FedEx Express fleet utilization statistics on AirNav RadarBox 

FedEx Express route heatmap on AirNav RadarBox