Air Transport World

FedEx.(US Majors)

Although the company had yet to report its results for the year ended May 31 at this writing, its net income for the nine months ended Feb. 29 fell 23% to $426 million from $550 million in the prior-year period. The 2004 results included $14 million in pre-tax costs related to business realignment programs. Total revenue climbed 6% but operating expenses rose 8%, resulting in a 23% decline in operating income to $755 million. At FedEx Express, the airline unit, operating income for the period plunged 55% to $222 million from $488 million in the previous year as a 5% increase in revenue was offset by a 7% jump in operating expenses.

In an effort to resize itself and improve profitability, FedEx launched an early retirement and severance program during the year. …

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