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News: FedEx bid/new hires/meet-n-greets

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Well-known member
Nov 27, 2001
From the Chief Pilot:

Expectations. Sizable bid (whatever that means) in March or so, 30 newhires a month or so, meet and
greets to resume maybe late January or so, Company earnings tomorrow morning…or so.

More good news from a company press release:

"MEMPHIS, Tenn., December 21, 2005 ... FedEx Corporation (NYSE: FDX) today reported earnings of $1.53 per diluted share for the second quarter ended November 30, compared to $1.15 per diluted share a year ago, an increase of 33%.

FedEx Corp. reported the following consolidated results for the second quarter:
  • Revenue of $8.09 billion, up 10% from $7.33 billion the previous year
  • Operating income of $790 million, up 32% from $600 million a year ago
  • Operating margin of 9.8%, up from last year's 8.2%
  • Net income of $471 million, up 33% from $354 million the previous year
"Customer demand for our broad portfolio of transportation services, a disciplined pricing approach by FedEx and strong productivity gains led to a sharp improvement in our operating margins," said Frederick W. Smith, chairman, president and chief executive officer. "FedEx is also benefiting from solid economic growth year over year in the U.S. and Asian economies, which we expect to continue in 2006."

Last year's second quarter included two one-time items which negatively affected earnings by a net $0.06 per share: A one-time charge of $48 million or $0.10 per diluted share related to the company's claim for compensation under the Air Transportation Safety and System Stabilization Act, partially offset by a $0.04 per diluted share tax benefit resulting from the passage of the American Jobs Creation Act of 2004.

Total combined average daily package volume at FedEx Express and FedEx Ground grew 3% year over year for the quarter, led by improved international express package growth. Yield management actions in U.S. deferred services at FedEx Express to improve profitability boosted yields while resulting in lower volume. FedEx Ground volumes were weaker than expected, but strengthened in the last two weeks of November and continue to strengthen in December. The higher FedEx Ground growth trend is expected to continue in the second half of the fiscal year.

FedEx expects third quarter earnings to be $1.15 to $1.30 per diluted share. The company increased its earnings guidance for the year to $5.45 to $5.70 per diluted share from its previous guidance of $5.25 to $5.50 per diluted share, which includes the net effect of a $0.15 per share lease accounting charge in the first quarter. Excluding the impact of the lease accounting charge, earnings for the year are expected to be $5.60 to $5.85 per diluted share. The capital spending forecast for fiscal 2006 remains approximately $2.5 billion.

"We exceeded our original forecast for the second quarter due to outstanding operational performance and the deferral of certain advertising and promotional expenses to the second half of the fiscal year," said Alan B. Graf, Jr., executive vice president and chief financial officer. "Our increased earnings guidance for the full year reflects confidence in our ability to continue executing our business strategy, manage our cost structure and leverage sustained economic growth."

For the second quarter, the FedEx Express segment reported:
  • Revenue of $5.37 billion, up 11% from last year's $4.83 billion
  • Operating income of $476 million, up 43% from $333 million a year ago
  • Operating margin of 8.9%, up from 6.9% the previous year
FedEx International Priority (IP) revenue grew 14% for the quarter. IP average daily package volume grew 8%, due to strong growth in Asia and Europe and continuing growth in U.S. export. IP revenue per package grew 5%, primarily due to higher fuel surcharges. U.S. domestic express package revenue increased 8%, as U.S. domestic revenue per package increased 7% and U.S. domestic volume increased 1%. The increase in U.S. domestic revenue per package was mainly driven by higher fuel surcharges and an increase in average rate per pound.

FedEx Express operating margin improved significantly year over year, benefiting from solid growth in IP revenue and significant improvement in productivity. Also, last year's operating margin was negatively affected by the one-time charge related to the company's claim for compensation under the Air Transportation Safety and System Stabilization Act".

Looks like things should keep looking up in terms of hiring for the next year or so at least. With all those profits I wonder why we can't seem to agree on a new contract?!? Interestingly enough, ground also increased 11% over last year, so they can't say that the Express division isn't keeping up with the Jones'.

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Give me my piece of the pie please, a big fat slice to be exact!
Hey, times are tough. Economy is down, fuel is up, war, strife, terrorism. I know nearly half a BILLION $$ a quarter SEEMS like a lot, but after you factor in all the bonuses paid to top execs, there really isn't a lot left over for the workforce.

Like I said, times are tough.
miles otoole said:
Oink, oink.

Yep, yep. Get it on paper now while things are good. But, as Laughing Jakal used to say in a previous career, "Pigs get fat, hogs get slaughtered."

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