FedEx announced rate hikes and detailed its cost-cutting efforts after warning last week it was seeing demand weaken globally.
In issuing its full first quarter results Thursday, the company said that its Express, Ground and Home Delivery rates will increase by an average of 6.9%. Its FedEx Freight rates will increase by an average of 6.9%-7.9%, the company said.
It also said it believes it will save between $1.5 billion and $1.7 billion by parking planes and reducing flights. The closure of certain locations, the suspension of some Sunday operations, and other expense actions will save FedEx Ground between $350 million and $500 million, according to the company.
FedEx said it will save an additional $350 million to $500 million by reducing vendor use, deferring projects and closing office locations.New Retirees May Face Surcharges for Medicare Premiums. Here's How to Appeal Paying Extra If Your Income Has DroppedDespite its bleak warning last week, FedEx stood by its 2025 projections set out in June. The company is forecasting annual revenue growth of between 4% and 6% and earnings per share growth of between 14% and 19%.
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