FedEx says it will scale back operations due to falling demand from users

Global logistics giant FedEx also shouted 'Winter is coming'!Raj Subramaniam, president and chief executive of FedEx Express, said that as of the end of the first quarter of the financial report on August 31, global freight volumes 'significantly worse'.FedEx expects business conditions to remain weak in its second-quarter earnings report (September, October, November) and has withdrawn its earnings forecast for the remainder of the fiscal year.

In a press release, FedEx said: 'First-quarter results were adversely impacted by weaker global freight volumes, a trend that accelerated in the final weeks of the quarter.' 'FedEx's results were particularly affected by Asia The impact of macroeconomic weakness and service challenges in Europe resulted in the segment's revenue falling approximately $500 million below company expectations. FedEx Ground revenue was approximately $300 million below company expectations.' FedEx President and CEO Rajsu 'Global freight volumes, both international and U.S., declined as macroeconomic trends deteriorated significantly later in the quarter,' Brahmanian said.

'We are responding quickly to these headwinds, but given the speed at which the situation is changing, the results for the first quarter were below our expectations.' 'Despite the disappointing performance, we are aggressively accelerating our efforts to reduce costs and Evaluate other measures to increase productivity, reduce variable costs and implement structural cost reduction programs.' International Airlinesair transportThe Transport Association's 2021 World Air Transport Statistics (WATS) data show that FedEx will retain its No. 1 position as a cargo airline in 2021, albeit at a lower level than many other top performers.

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