FedEx plugs transport hole caused by MD-11 groundings
FedExFedEx(US:FDX) Yahoo Finance·2025-11-12 13:42

Core Viewpoint - FedEx expects minimal disruption in shipping operations due to the grounding of its MD-11 freighter fleet, as inspections can be completed quickly and alternative aircraft have been deployed to maintain capacity [1][5]. Group 1: Regulatory Actions and Inspections - The Federal Aviation Administration (FAA) ordered FedEx, UPS, and Western Global Airlines to pause MD-11 operations following a fatal crash of a UPS MD-11, which resulted in 14 fatalities [2]. - FedEx will begin inspecting 25 of its MD-11 aircraft in the coming days, with a total of 34 MD-11s in its fleet, of which six are inactive and three are spares [3]. - Inspections will focus on the engines and engine mounts, and aircraft will be returned to service on a tail-by-tail basis after inspection [4]. Group 2: Operational Adjustments - FedEx is leveraging its global network to replace the lost MD-11 capacity, which is crucial during the peak shipping season as retailers prepare for the holidays [5]. - The company is activating spare aircraft, postponing routine maintenance on other aircraft, and routing shipments through commercial airline partners to mitigate the impact of the grounded MD-11s [6]. - Additionally, FedEx is shifting more packages to its domestic ground network, as 18 of the 25 operational MD-11s are used for domestic flights [6]. Group 3: Impact of Government Regulations - The grounded MD-11s count towards the FAA's target for airlines to reduce flight schedules amid a government shutdown, which has led to a 4% cancellation rate of flights, expected to rise to 10% by November 14 [7].