FedEx retired 12 aircraft in its fiscal fourth quarter to better align its air network with projected demand, the company said, as it continues to navigate a volatile freight environment.

The American express delivery giant made the announcement as it released its consolidated results for the fourth quarter ended May 31, 2025. FedEx reported that its revenues were up 0.4% year-over-year to US$22.2 billion, while operating income increased by 14.7% to US$1.8 billion. 

The company's net income stood at US$1.6 billion, expanding 23.1% year-on-year.

FedEx said operating income and margin improved in the fourth quarter, as the company achieved its DRIVE structural cost reduction targets. Fourth quarter results also benefited from higher volume at Federal Express and higher base yield at each transportation segment.

"Federal Express segment operating results improved during the quarter, driven by cost reduction benefits from DRIVE, increased U.S. and international export volume, and higher base yield," said Raj Subramaniam, FedEx Corp. president and chief executive officer. 

"These factors were partially offset by higher purchased transportation and wage rates, one fewer operating day, and the expiration of the U.S. Postal Service contract," he added, citing these factors as the major headwinds for FedEx during the quarter.

During the fourth quarter, FedEx said it also permanently retired 12 aircraft from its fleet incurring noncash impairment charge of US$21 million: seven Airbus A300-600 aircraft, three MD-11 aircraft, and two Boeing 757-200 aircraft, plus eight related engines.

"These retirements are aligned with the company's fleet reduction and modernization strategy as the company continues to improve its global network efficiency and better align air network capacity with anticipated demand," FedEx said.

It noted that last year’s fourth quarter results also included a noncash impairment charge of US$157 million from the decision to permanently retire 22 Boeing 757-200 aircraft and seven related engines.

FedEx now operates 90 Boeing 757s, 34 MD-11 freighters, and 58 Airbus A300s.

Its 777 fleet grew by two aircraft over the past year to 59, while its 767 fleet increased by seven to 145. The company plans to add another seven 767s by year's end.

Looking ahead, FedEx Corp. Executive Vice President and CFO John Dietrich said the company will continue to prioritize network transformation in the coming fiscal year while keeping a close eye on spending.

"In fiscal 2026, we will remain focused on advancing our network transformation while maintaining a disciplined approach to capital spending and returning capital to our stockholders," he said.