We know that the number of package flights operated by both FedEx Express and UPS "significantly declined month over month in July," according to Yahoo! Finance.
Since the spring of 2022, the overall cargo market has been waning. And the shipping industry's response thus far has been to impose new efficiency initiatives to try to lower costs and accommodate smaller express volumes.
Compared to the month of June, FedEx flew 9 percent fewer domestic flights in July. Year-over-year flight activity at the company was down 14 percent, according to investment bank Morgan Stanley.
From June to July, year-over-year declines in package volumes at UPS accelerated to 13 percent, up from 10 percent in June, while flight activity in May and June, comparatively, remained relatively stable.
Both FedEx and UPS have said they are reducing flight activity while also attempting to streamline their air infrastructure as part of a multi-year effort to reduce structural costs and improve profit margins.
Another way FedEx is reducing costs is by removing 29 aircraft from its fleet, either by permanent retirement or temporary storage. For the last fiscal year, which ended on May 30, FedEx retired 18 of its older aircraft and reduced global fight hours by 12 percent during the final quarter.
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