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Dive Brief:
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FedEx is acquiring 10 ATR 72-600 freighters, with deliveries scheduled between 2027 and 2029, according to a March 21 press release from the aircraft manufacturer.
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The express carrier’s ATR fleet currently handles feeder operations critical for reaching smaller markets.
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The order builds on a previous commitment of 30 additional ATR aircraft and aims to replace FedEx’s legacy ATR fleet to strengthen its air cargo network capabilities.
Dive Insight:
FedEx’s fleet modernization efforts are part of a larger push to reconfigure its air network to drive savings and boost profits. The move comes amid FedEx’s Tricolor initiative redesign, which intends to match capacity more closely with current demand. Previously, FedEx operated its air operations on a hub-and-spoke model.
FedEx has been slowly phasing out its MD-11 aircraft as part of its fleet restructure. The company has retired 20 MD-11s over the past three years, and initially had plans to retire the remainder of the fleet by fiscal year 2028.
However, international freight market growth projections pushed FedEx to delay the retirement of the MD-11 fleet to fiscal year 2032, EVP and CFO John Dietrich told analysts during a March 20 earnings call.
“But right now, given the demand that we're seeing out there and particularly in the international economy growth, we elected to extend the life of those aircraft,” he noted.
By extending the retirement plan, the carrier can ensure network flexibility while minimizing aircraft CapEx, according to Deitrich.
“Those assets are mostly depreciated, but have some useful life left in them and can support our profitable growth strategy,” he explained. “So, if the demand environment doesn't pan out, we also have the ability to accelerate any retirements on MD-11s.”
Dietrich added that FedEx also agreed to purchase eight new and two used B777Fs, which will phase into operations in 2026 and 2027. The decision was driven by the company’s MD-11 phase-out, in addition to its market growth projections.
The aircraft and will help FedEx manage its fleet in the long term while still staying true to its $1 billion aircraft CapEx commitment for fiscal year 2026, Dietrich said.
“We've continued to manage and rationalize the size of our jet fleet, including retiring some of our older aircraft over the last several years,” he told analysts. “This is consistent with our go-forward strategy to prioritize revenue quality and grow in the premium segments of the market.”