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FedEx forecasts full recovery of Europe-Asia cargo corridor by 2024
June 27th 2022
FedEx executive vice president and chief marketing and communications officer, Brie Carere, said at the company's financial results presentation that global trade growth had slowed from disruptions related to lockdowns in China and the conflict in Ukraine, limiting the flow of goods and reducing international export volumes. Read More » “We do anticipate supply chain disruptions throughout the fiscal year,” Carere said. “Belly capacity on passenger airlines is expected to remain constrained in fiscal year 2023, resulting in a pricing environment still favourable to FedEx if a little less than before. The Europe to Asia lane is estimated to recover in the first quarter of calendar year 2024 and belly capacity on trans-Pacific airlines is estimated to recover in the third quarter of that year. Commercial capacity between Europe and Asia is not forecast to recover until the first three months of calendar year 2025.” FedEx reported a net profit of US$3.8 billion for the 12 months to May 31, 2022, down 26.8% from a US$5.23 billion profit in the previous corresponding period. Revenue rose 11.3%, to US$93.5 billion, FedEx said in a regulatory filing to the U.S. Securities and Exchange Commission.
