FedEx’s new planes will boost profits

Fleet upgradation, however, will take place a year from now

15 per cent 20 years old 660 planes double-digit margins FedEx Fred Smith old planes profit margins

FedEx has chalked out a plan to enhance its cargo profit margins by 10 per cent or more by replacing its old planes with new and efficient ones. At least 15 per cent of FedEx’s 660 aircraft are more than 20 years old. In fact, chief executive Fred Smith was quoted as saying that upgrading the aircraft would be a “very big part of achieving double-digit margins”. The international logistics major, however, will have to wait for a year for the new planes.