FedEx Cuts Flights, Grounds Planes

FedEx has reported its third consecutive decline in quarterly revenue, signaling a decrease in demand following the post-pandemic surge. As a result, the company plans to reduce costs by cutting flights and grounding more aircraft. Despite the recent drop in stock value, shareholders have experienced a significant increase in their stake in the express transportation company, with a rise of approximately 33% this year, surpassing the S&P 500's 13% growth. To further reduce costs, FedEx intends to merge its Express and Ground delivery networks into a single business, aiming to save around $4 billion over the next two years. For the quarter, FedEx reported a profit of $1.54 billion, or $6.05 per share, compared to $558 million, or $2.13 per share, in the same period the previous year. On an adjusted basis, the company's per-share earnings were $4.94, surpassing analyst estimates. Sales dropped by 10% to $21.93 billion in the quarter, falling short of the projected $22.55 billion.