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FedEx to outsource more cargo flying in cost-cutting effort

December 22, 2022

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FedEx will increasingly rely on outsourced air transport for growth as it pursues an aggressive cost-cutting strategy to resize its delivery network in line with deteriorating market conditions and a structural rebalance in e-commerce sales, executives said.

“An initial priority is to optimize the global air network where we expect to generate approximately $400 million in savings. This work includes deploying digital assets that allow us to efficiently balance our purple tile airplanes and third-party lift as we build the network of the future,” said CEO Raj Subramaniam on Tuesday’s briefing about the company’s fiscal year second-quarter earnings.

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