By Eva Richardson | The Logistic News | March 24, 2025
In a bold step toward fleet modernization and long-term capacity growth, express logistics giant FedEx has confirmed orders for eight additional Boeing 777 freighters and ten ATR 72-600 turboprops, reinforcing its strategy to meet shifting global cargo demands. The announcement comes alongside a solid third-quarter financial performance, with the company posting steady gains in both revenue and net income.
Expanding Widebody and Regional Capabilities
FedEx said that in March 2025, it exercised options to acquire eight new 777F aircraft, scheduled for delivery between 2026 and 2027. The latest order adds to two 777Fs already secured earlier in the quarter, bringing the company’s total confirmed 777F backlog to 11 aircraft.
Currently, FedEx operates a fleet of 57 Boeing 777 freighters, which are integral to its long-haul operations across key transpacific and intercontinental lanes. These new aircraft are part of the carrier’s ongoing effort to replace aging aircraft with fuel-efficient models. As part of this shift, FedEx has also extended the retirement of its MD-11F fleet—which now stands at 37 aircraft—from 2028 to the end of 2032, offering a more gradual transition for its long-haul operations.
Commitment to Regional Efficiency
Alongside the widebody expansion, FedEx also confirmed the purchase of 10 additional ATR 72-600 freighters, complementing its previous order of 30 aircraft. These turboprop freighters are purpose-built for regional logistics and short-haul operations. They feature a 9.2-ton payload, 75 cubic meters of volumetric capacity, and are equipped with a large cargo door and ULD-compatible cargo handling systems.
The ATR aircraft are scheduled for delivery between 2027 and 2029, with 23 already delivered out of the 40 total on order. Their addition reflects FedEx’s strategy to enhance flexibility and reduce operating costs across regional networks, particularly in markets with infrastructure constraints or growing e-commerce demand.
Financial Results: Q3 2025 Highlights
FedEx’s third-quarter results, covering the period ending February 28, 2025, show a company navigating macroeconomic headwinds with operational resilience:
- Revenue increased 2.3% year-on-year to $22.2 billion
- Operating income rose 4% to $1.3 billion
- Net income climbed 3.4% to $910 million
President and CEO Raj Subramaniam praised the company’s performance amid operational challenges:
“The FedEx team delivered improved profitability while navigating a very challenging operating environment, including a compressed peak season and severe weather events.”
Operational Drivers and Challenges
FedEx’s Drive cost-savings programme, which delivered $600 million in savings during the quarter, played a central role in the improved financial results. Gains in base yield, as well as increased US and international export volume, contributed to stronger performance in the Federal Express segment.
Demand for deferred services grew, even as a weak industrial economy continued to suppress demand for priority and B2B services. At the same time, the expiration of the US Postal Service contract and higher costs related to wages and transportation rates partially offset those gains.
The FedEx Freight segment, meanwhile, saw operating income decrease due to reduced fuel surcharges, fewer shipments, and lower weight per shipment, though these were partially offset by higher pricing discipline.
Looking Ahead
While global trade policy uncertainty continues to create unpredictability in long-term demand, FedEx remains confident in its ability to adapt.
“We believe our flexible global network, digital tools, and data ecosystem enable us to adjust quickly,” the company said in a statement.
With a modernized fleet on the horizon and a balanced cost-control strategy in play, FedEx appears well-positioned to navigate the evolving logistics landscape—and continue asserting its leadership across both regional and international markets.
Eva Richardson
Senior Editor, Aviation & Logistics | The Logistic News
