FedEx expects USD175 million in peak-season costs due to the grounding of the MD-11F fleet at FedEx Express, according to the corporation’s chief financial officer John Dietrich.
“We do have some incremental costs, particularly in December. USD25 million was in November, but in December we will have significantly higher costs incurred on the MD-11F. That’s peak season, and it is an expensive time of year to be getting outsourced lift to begin with, let alone when you have [own] fleet grounded,” Dietrich said.
The company expects its MD-11F fleet to return to service in FedEx’s fiscal fourth quarter, which ends on May 31, 2026.
FedEx was forced to ground its MD-11 fleet in early November, following the crash of a freighter of the type operated by UPS Airlines as it departed Louisville International.
Raj Subramaniam, president and chief executive of FedEx Corporation, explained that at the time of the grounding, twenty-five of the thirty-four MD-11Fs the company owned were in operation.
“Our network planning team immediately implemented contingencies, prioritising protecting our customer commitments and stabilising the network,” he said, adding that some of the actions it took included trucking more volume in the United States instead of flying.
Both FedEx and UPS have scrambled to find replacement trucks and planes after the crash, with the latter securing wet-lease deals with companies such as 7 AIR, Kalitta Charters II, and Cargojet Airways, among others.
According to ch-aviation data, the three operators of the MD-11F are FedEx Express (58 units), UPS Airlines (26), and Western Global Airlines (14). The latter had the biggest impact on its business due to the percentage the MD-11F represented in its fleet, and was forced to make rushed pilot headcount reductions. FedEx expects to retire its MD-11F fleet at the end of 2032.
