FedEx Express struggles as customers shift to low yielding services
Article by Cathy Morrow Roberson from Transport Intelligence - Published on 20th March 2013
Most concerning remains the Express division, which contributes over 60% of total revenue for the company. Express revenue increased 2% to $6.7bn but operating income declined 66% to $118m. According to FedEx, customers continued to shift to lower-yielding services. For the quarter, International Express Export revenue increased 2% with much of the increase due to International Economy and International Domestic - International Priority service declined 4% to $1.6bn while International Economy increased 8% to $491m and International Domestic increased 63% to $342m. It should be noted that rate increases played a major role in the increase in revenue for International Economy and International Domestic.