In response to weak demand, FedEx has reduced the frequency of flights and parked some of its cargo aircraft.

The international carrier has halted around 23 US domestic flights and nine International ones. At the same time it has reduced sorting points and consolidated loads at its domestic Ground unit.

The news comes after FedEx had announced plans to cut costs by as much as $2.7 billion in its current financial year due to a range of issues that include weakening markets in Asia and Europe.

Chief Financial Officer Mike Lenz said at at the Baird 2022 Global Industrial Conference, ”Unquestionably, the commencement and the speed and depth of that shift was beyond what we certainly had anticipated,” he noted. “That’s why we have been taking down trans-Pacific flights,” he added.

FedEx has been preparing for a weak holiday season as can been seen in our reports here at Apex Insight. This shows weakness where rivals Deutsche Post DHL have managed to go from strength to strength in the same economic headwinds. The peak season is a critical time for last mile delivery carriers and this could be particularly challenging for FedEx.