While FedEx is expecting volume declines to continue moderating at its Express and Ground operating companies, it’s a different story for its LTL unit.
For the quarter ending May 31, both revenue and average daily shipments at FedEx Freight fell 18% YoY. The LTL has trimmed costs via furloughs, parking and selling equipment, limiting employee hiring and other measures to match a weak demand environment, contributing to a 15% reduction in operating expenses for the quarter.
Those actions may have eased pressures to Freight’s bottom line, but it was still a difficult quarter. Operating income dropped 26% YoY, outpacing a 22% decline at FedEx overall.
