FedEx is implementing a restructuring of its services, starting in the United States, where it has announced its intention to spin off the Freight division, which handles LTL (Less Than Truckload) road transport, to focus on shipping and logistics. This was stated on June 25, 2024, by the multinational's CEO and President, Raj Lo, after announcing the fourth-quarter results.
FedEx Freight is a division that yields good results, better than the other land-based activities: in the last two years, it has recorded operating margins of twenty percent, compared to 11.8% for the Ground division and two percent for the Express division. Additionally, FedEx LTL is the leading U.S. road carrier in the LTL segment.
The company's management has left two options open: either sell the division or spin it off, with the possibility of the new company's shares being purchased by current investors or new entities. The second option appears more likely to some analysts because the valuation of FedEx Freight would be too high to put it entirely on the market, with some estimates reaching $50 billion.
In the aviation sector, FedEx has announced the retirement of twenty-two Boeing B757s, bringing the fleet size to 389 units. Ninety-two B757Fs remain operational. In compensation, the company has recently received ten B767Fs and four B777Fs. The former are gradually replacing the older A300-600RF and MD-11F aircraft.