FedEx Corporation (FDX): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of how FedEx Corporation (FDX) actually makes its money, especially now with massive changes like the planned Freight spin-off and the DRIVE program wrapping up. Honestly, looking at their Fiscal Year 2025 numbers-like hitting $87.9 billion in consolidated revenue while aggressively cutting costs, aiming for that $4 billion in structural savings-shows a company in deep transition. We're talking about managing a global network that runs on over 500,000 people, balancing premium Express services against high-volume Ground, all while CapEx dropped to a decade low of $4.1 billion this year. If you want the precise breakdown of the nine building blocks driving this logistics giant today, check out the canvas below.

FedEx Corporation (FDX) - Canvas Business Model: Key Partnerships

You're looking at the external relationships FedEx Corporation relies on to keep its massive global network moving and innovating, so let's get straight to the numbers driving these alliances as of late 2025.

Technology partners for digital transformation and AI integration

FedEx Corporation is embedding Artificial Intelligence deeply into its operations, supported by major tech firms. The company launched an enterprise-wide AI Education and Literacy Program with Accenture, aiming to provide personalized, role-based training to over 500,000 FedEx team members globally using Accenture's LearnVantage platform. This push is backed by capital expenditures of $2.1 billion directed toward AI systems, Electric Vehicles (EVs), and sustainability projects by 2025. Furthermore, a multi-year strategic collaboration with ServiceNow integrates AI, data, and workflow solutions to enhance supply chain operations through real-time insights and disruption prediction capabilities. In physical sorting, AI-powered sorting robots, developed with firms like Hellebrekers B.V. and Plus One Robotics, are deployed in key hubs, processing up to 1,000 parcels per hour.

Strategic alliances for Sustainable Aviation Fuel (SAF) procurement, like Neste

Sustainability partnerships are critical, especially since the aviation network consumes the largest portion of FedEx Corporation's fuel globally. FedEx has a major agreement with Neste for the supply of 8,800 metric tons of blended Neste MY Sustainable Aviation Fuel at Los Angeles International Airport (LAX). This procurement, which began delivery in May 2025 and extends for a year, is the largest SAF purchase by a U.S. cargo airline at LAX to date and is estimated to account for approximately 20% of FedEx's annual jet fuel consumption there for the 2025 financial year. The blended fuel contains a minimum of 30% neat Neste MY Sustainable Aviation Fuel. Beyond Neste, FedEx is deploying SAF at other major airports:

• At Chicago-O'Hare, receiving one million gallons of neat SAF at a minimum 30% blend from Air bp.
• At Miami International, receiving three million gallons of blended SAF at a minimum 30% blend from AEG.

FedEx Corporation has an ambition to obtain 30% of its total fuel supply from alternative sources on a blended basis by 2030.

Local/regional last-mile delivery partners (e.g., QuikBot in Singapore)

Last-mile efficiency is bolstered by local collaborations in dense urban areas. In Singapore, FedEx Corporation partnered with QuikBot Technologies to introduce Autonomous Final-Mile Delivery (AFMD) robots, which are now fully operational at sites like South Beach Tower, with more commercial clusters expected to integrate by the end of 2025. Also in Singapore, the collaboration with Singapore Post Limited (SingPost) was expanded, increasing parcel acceptance points from six to 43, including the POPStop@Tampines MRT, to enhance international shipping accessibility.

E-commerce platforms and major retailers for integrated shipping solutions

To support the high volume of e-commerce, FedEx Corporation integrates its digital tools directly with major platforms. The Ship Manager platform is integrated with prominent e-commerce marketplaces such as Shopify and BigCommerce for Asia Pacific e-tailers. For the 2025 holiday season, a report revealed that 97% of large U.S. retailers surveyed plan to use AI to enhance the shopping experience. FedEx Corporation reported an annual revenue of $89 billion for FY25, with Q1 FY25 revenue holding steady at $21.6B.

Independent contractors/service providers for FedEx Ground operations

Transportation services for FedEx Ground rely on independent businesses contracting with FedEx Corporation. These Independent Service Providers (ISPs) operate within a landscape shaped by the Network 2.0 optimization, which was implemented in approximately 290 locations by the end of FY25. The financial reality for these partners shows that average profit margins are currently between 14-18% of route revenue.

FedEx Corporation (FDX) - Canvas Business Model: Key Activities

You're looking at the core engine room of FedEx Corporation, the activities that turn their massive infrastructure into delivered value. This isn't just about moving boxes; it's about the disciplined execution of massive, multi-year transformation programs that are fundamentally reshaping how they operate.

Executing the DRIVE program for $4 billion in structural cost savings by FY2025

The DRIVE program was the central financial lever for FedEx Corporation, designed to fundamentally restructure operations for long-term profitability. The company declared success in meeting its goal by the end of fiscal year 2025. The total targeted structural cost reductions relative to fiscal year 2023 were $4 billion. This was broken down across the operating segments, with specific targets set for each area to ensure accountability.

Here's the quick math on where those savings were slated to come from:

• Achieving $1.4 billion in savings within FedEx Express.
• Achieving $1.1 billion in savings within FedEx Ground.
• Achieving $1.5 billion in savings across Shared & Allocated Expenses.

To be fair, the achievement of the $4 billion in permanent cost reductions was realized through specific actions: $1.3 billion from air network reconfigurations and capacity cuts, $1.2 billion from surface network changes like workforce reductions, and $1.5 billion from merging operating companies under a unified structure. This cost discipline was paired with a significant reduction in capital outlay; capital spending for fiscal 2025 was $4.1 billion, a 22 percent drop from the prior year.

Operating and optimizing the integrated global air and ground network (Network 2.0)

Network 2.0 is the operational manifestation of the One FedEx unification, knitting together the historically separate Ground and Express networks. This activity focuses on eliminating redundancies and optimizing asset utilization across the entire system. By the end of fiscal 2025, the company had completed a massive restructuring effort across North America.

The scale of the physical network optimization activity is substantial:

• 140 facilities had been shuttered to cut operational overlap.
• 290 stations were converted to handle combined Express and Ground volumes by May 2025.
• This consolidation meant that by the end of Q1 of the next fiscal year (ending August 31, 2025), 18 percent of the average daily U.S. volume was flowing through these integrated facilities.

The financial projection tied to this integration is significant. FedEx expects to achieve $1 billion in expense reductions specifically from Network 2.0 and structural cost savings in fiscal year 2026 alone. The overall goal is to have the U.S. network fully implemented by the end of calendar year 2027.

Managing a complex fleet of aircraft and ground vehicles

Managing the physical assets-the planes and the trucks-is a non-stop key activity, balancing capacity needs with the cost of ownership and operation. FedEx Express operates the world's largest dedicated cargo fleet. The company is actively modernizing this fleet, retiring older aircraft like the MD-11s and A300s, while taking delivery of newer, more efficient models.

Here are the hard numbers on the fleet as of late 2025 data:

The company is also leveraging technology to manage this fleet more intelligently, deploying AI-enabled tools to dynamically align capacity with demand, which helps manage the cost of flying assets.

Developing and deploying advanced logistics technology and tracking systems

Technology development is now woven into the core of FedEx's strategy, moving beyond simple tracking to using data science for operational control. This includes significant investment in automation to handle the sheer volume of e-commerce and B2B parcels. For instance, the deployment of AI-powered sorting robots in key hubs allows for processing up to 1,000 parcels per hour per robot.

The integration of these digital assets is deep:

• Over 40 percent of FedEx's sortation operations are now automated as of early 2025.
• The company directed $2.1 billion in capital expenditures toward AI systems, Electric Vehicles (EVs), and sustainability projects by 2025.
• AI is used for optimizing routing and improving forecast accuracy, reducing manual intervention.

This digital push is critical for enhancing customer experience, with new machine learning algorithms providing real-time Estimated Delivery Time Windows (EDTW) in key international markets.

Sales and contract management for large B2B enterprise clients

Securing and managing large, stable business-to-business (B2B) contracts forms a bedrock of FedEx's revenue stability, especially as some consumer segments fluctuate. The B2B segment is the core of the package business, representing nearly 60 percent of package revenue. Furthermore, B2B accounts for an even larger share of the LTL (less-than-truckload) business, at 90 percent.

The focus on specific high-value sectors yielded concrete results in fiscal 2025:

• Health care-related revenue reached $9 billion by the end of fiscal 2025, a key driver for U.S. priority volumes.
• In the prior year (2024), 939 of North America's Top 2000 online retailers used FedEx as a shipping carrier.

The company finished fiscal 2025 with total annual revenue of $87.9 billion, showing marginal growth year-over-year, which management attributed to flexing the network to match demand, including in these enterprise segments.

FedEx Corporation (FDX) - Canvas Business Model: Key Resources

You're looking at the core assets FedEx Corporation (FDX) relies on to run its global logistics machine as of late 2025. These aren't just line items; they are the physical and intellectual foundation of their value proposition.

The global physical network is massive, connecting markets that comprise more than 99% of the world's gross domestic product, spanning over 220 countries and territories. This infrastructure includes service at over 650 airports worldwide and a network of approximately 5,000 facilities as of fiscal year 2024 data.

The extensive fleet is a critical component for moving goods across this network. FedEx Corporation has over 200,000 motorized vehicles. The air component, specifically the FedEx Express air cargo fleet, comprised 468 aircraft as of November 2025. This fleet is undergoing modernization, with capital expenditures for aircraft and related equipment totaling approximately $29.108 billion on the balance sheet at the end of fiscal year 2025.

Here's a quick look at the scale of the physical assets:

Proprietary technology enables the operation of this physical scale. This includes real-time tracking capabilities, which handle over 500 million package-status tracking requests daily. Furthermore, the transformation efforts, like Network 2.0, are technology-driven, with optimization implemented in approximately 290 locations by the end of fiscal year 2025. Capital spending on information and technology decreased in FY25, following a period of investment.

The human capital supporting these operations is substantial. FedEx inspires its more than 500,000 employees worldwide as of fiscal year 2025. For instance, the FedEx Express segment alone accounted for over 430,000 team members in data from around fiscal year 2024.

The intangible asset is the globally recognized brand name. This brand equity underpins the company's reported fiscal year 2025 revenue of $88 billion. The company's focus on this brand and its integrated network contributed to achieving structural cost reductions of $2.2 billion in FY25 over the FY23 base.

Key employee and brand metrics include:

• Team members worldwide: Over 500,000
• FY2025 Revenue: $88 billion
• Package-status tracking requests daily: Over 500 million
• Network 2.0 Optimization Complete: Approximately 290 locations

FedEx Corporation (FDX) - Canvas Business Model: Value Propositions

Guaranteed, time-definite express delivery for critical shipments.

The Federal Express segment, which includes the core express offerings, represented 86.0% of the total FedEx Corporation revenue in the first quarter of fiscal 2026, showing a year-over-year rise of 4.4%. This segment's operating results improved during the third quarter of fiscal 2025, driven by higher U.S. domestic and international priority package yields. However, International Priority revenues saw a drop from $10.9 billion in 2023 to $8.7 billion in 2025.

Global reach to over 220 countries and territories.

FedEx Corporation utilizes its flexible, efficient, and intelligent global network covering more than 220 countries and territories. FedEx Express specifically delivers to more than 375 destinations across these 220 countries and territories. FedEx contributed $126 billion in direct and indirect impact to the global economy in fiscal year 2025 (FY25).

Specialized logistics: Cold chain support for the $70 billion Healthcare segment.

FedEx is targeting profitable delivery types, like healthcare business-to-business shipping. FedEx expected to end fiscal year 2025 with about $9 billion in healthcare revenue. This followed more than $500 million in quality healthcare agreements landed in fiscal year 2024. The company was onboarding nearly $400 million in new annualized revenue for its healthcare vertical over 90 days as of March 2025. The FedEx Surround platform's monitoring and intervention offering was recently expanded to 40 countries.

Cost-efficient ground delivery for high-volume e-commerce.

The U.S. Ground deliveries segment gained nearly $34 billion in revenue in 2025. Global daily parcel volumes were approximately 17.1 million in 2025. In contrast, daily FedEx Freight shipments fell to about 90,000 in 2025.

Digital transparency via real-time tracking and picture proof of delivery.

The network moves approximately 17 million packages per day. Daily package-status tracking requests exceed 500 million. The platform offering real-time shipping visibility, FedEx Surround, was a key driver for new healthcare business.

Here's a quick look at operational scale informing these value propositions:

You can see the focus on leveraging the massive scale of the network, especially in tracking, to deliver on specialized, high-value needs like healthcare, while maintaining the core express speed.

• FedEx International Priority service offers time-definite delivery typically in 1 to 3 business days to select key markets.
• FedEx Surround monitoring expanded to 40 countries for critical shipments.
• U.S. Ground revenue for 2025 reached nearly $34 billion.

FedEx Corporation (FDX) - Canvas Business Model: Customer Relationships

You're looking at how FedEx Corporation (FDX) manages its interactions across its vast customer base as of late 2025. The relationship strategy clearly segments between high-touch enterprise support and high-volume digital self-service.

Dedicated account management for large B2B and enterprise customers

For the largest shippers, the relationship is high-touch and consultative. This segment forms the financial backbone of the package business, as FedEx B2B revenue comprises nearly 60% of the carrier\'s package business. Furthermore, the FedEx Freight less-than-truckload (LTL) business is almost entirely B2B, at 90%. This focus is also evident in specialized, high-margin areas; for instance, healthcare-related revenue reached $9 billion in fiscal year 2025. These large accounts are the primary target for advanced visibility tools like FedEx Surround, which is specifically leveraged for gaining market share in healthcare and automotive B2B segments.

Digital self-service tools for tracking, scheduling, and managing shipments

The transactional relationship relies heavily on digital enablement, driven by consumer expectations. For the end-user, real-time tracking is a table-stakes feature, expected by 68% of shoppers surveyed in early 2025. The digital preference is strong, especially among younger demographics, with nearly 70% of Gen Z engagement occurring online. Furthermore, 27% of consumers prefer buying directly from a brand's website or app, reinforcing the need for seamless digital integration across the entire shipping lifecycle. The company's overall fiscal year 2025 revenue was $87.926 billion, supported by this digital infrastructure.

Proactive monitoring and intervention services (e.g., FedEx Surround)

For critical shipments, FedEx deploys proactive services like FedEx Surround. The FedEx Surround Preferred tier specifically includes 24/7 proactive monitoring and risk reporting, utilizing near real-time data and predictive analytics to allow for intervention before delays impact delivery. This service is designed to manage time-sensitive, life-saving, or high-value goods, offering shipment prioritization and dedicated recovery teams at major hubs.

Transactional relationships for individual and small business shippers

The vast majority of the 17.1 million global packages transported daily in Q3 FY2025 fall into the transactional category, though specific revenue splits for small businesses versus individuals are not explicitly detailed. The relationship is characterized by ease of use for basic tasks, such as creating shipments or managing returns digitally. The importance of a frictionless experience is underscored by the fact that 97% of shoppers have abandoned a purchase due to inconvenience, making simple, transactional interactions vital for repeat business. For small and medium-sized businesses, FedEx launched initiatives like the Collaborative Shipping Tool to all import customers in APAC, Canada, MEISA, and the U.S. in FY25.

Customer support via phone, online chat, and retail locations

When digital tools are insufficient, customers have multiple contact points. The primary phone support line for the USA and Canada is 1-800-463-3339, and the call center operates 24 hours, 7 days. Wait times on the phone can range from a few minutes up to 15-30 minutes during peak volume. The best day to call for shorter hold times is reportedly Saturday. For physical interaction, FedEx maintains a significant footprint:

Chat support is available on the website for real-time assistance, complementing phone and email options. The company also employs more than 500,000 team members globally to support these customer interactions.

FedEx Corporation (FDX) - Canvas Business Model: Channels

You're looking at how FedEx Corporation gets its services-from a package pickup to complex supply chain management-into the hands of its customers as of late 2025. The channels are a massive, integrated physical and digital web.

Integrated global air and ground transportation network

The core channel is the physical network itself, which is the world's largest express transportation system. FedEx Corporation serves more than 220 countries and territories globally. This physical reach is supported by significant assets, including approximately 700 aircraft and around 40,000 vehicles. The company moves a massive amount of freight, transporting approximately 17 million packages per day across this network. Operationally, the Network 2.0 optimization initiative, aimed at streamlining operations, had been implemented in approximately 290 locations across the U.S. and Canada as of May 31, 2025. The company states it connects 99% of the world's commerce.

Here's a quick look at the scale of the physical network components:

FedEx Office locations for retail drop-off and printing services

The FedEx Office segment provides a crucial retail touchpoint for both shipping and business services. As of late 2025, FedEx Office operates over 2,000 locations. This channel employs more than 12,000 team members. Beyond standard drop-off and printing, this channel supports newer digital services; for instance, the FedEx® Easy Returns program utilizes 3,000 participating FedEx Office and Kohl's locations for convenient QR code drop-offs. The services offered here include printing for posters and presentations, professional finishing, and passport photo services.

Direct sales force for large-scale contract negotiation

For major business-to-business (B2B) customers, the direct sales force is the primary channel for securing large-scale, integrated logistics contracts. While specific revenue attributed directly to this sales channel isn't publicly itemized in the same way as segment revenue, the focus on B2B growth is evident. For example, the Federal Express segment saw gains from recent healthcare wins, which are part of the strategy to profitably grow in B2B. This channel is essential for embedding FedEx solutions deep within customer supply chains, moving beyond transactional shipping to strategic partnerships.

Digital channels: fedex.com and mobile applications for booking and tracking

Digital channels are central to the customer experience, especially given evolving e-commerce expectations. The company launched fdx, a fully integrated data-driven commerce platform, in September 2024 to connect the entire customer journey. Customer demand heavily favors digital functionality; for example, real-time tracking is cited as an essential feature by 68% of surveyed consumers. Generational preferences further underscore digital importance: 70% of Gen Z engagement occurs online. Furthermore, 27% of Millennials prefer to buy from a brand's website or app for direct-to-consumer purchases. The digital portfolio also includes tools like FedEx Delivery Manager® for delivery flexibility and FedEx® SenseAware for merchant supply chain visibility.

Digital Channel Preference Snapshot:

• Gen Z Online Engagement: 70%
• Consumers Expecting Real-Time Tracking: 68%
• Millennials Preferring Brand Site/App Purchase: 27%
• New Commerce Platform Launch: fdx in September 2024

Third-party re-sellers and authorized shipping centers

FedEx extends its reach through a network of authorized third parties, which act as convenient access points for customers. The overall network includes approximately 5,700 independent service providers handling pickup and delivery in some areas. For retail shipping and drop-off, the company partners with major retailers. For instance, Office Depot® and OfficeMax® offer FedEx shipping at over 900 locations. Other authorized points include locations within Walgreens, Dollar General, and Drop Box networks. This strategy helps ensure high density for package acceptance without requiring a proprietary FedEx-branded facility at every point.

FedEx Corporation (FDX) - Canvas Business Model: Customer Segments

You're looking at the core groups FedEx Corporation targets to move its freight, packages, and supply chain solutions. Honestly, the customer base is a mix of massive corporations and the rapidly growing individual shipper, but the strategy is clearly tilting toward high-value B2B verticals.

Large B2B enterprises (Retail, Manufacturing, Technology) form the backbone, primarily served through the Federal Express Segment, which generated $23.72 billion in revenue, accounting for 82.53% of FedEx Corporation's total revenue in fiscal year 2025. While the overall FY2025 revenue was $87.9 billion, the focus within this enterprise group is on securing high-margin, complex logistics contracts, especially as some B2B volumes have softened due to industrial economy weakness. Close to half of the Top 2000 retailers in North America use FedEx as a shipping carrier.

The push into High-growth verticals: Healthcare and Automotive supply chains represents a deliberate strategy to capture more profitable business. The healthcare segment is a priority, with FedEx ending fiscal year 2025 with $9 billion in healthcare-related revenue. This is a fast-growing market segment estimated to be worth $70 billion, where FedEx has a double-digit percentage of revenue. For the automotive sector, FedEx established a new vertical to target an estimated $10 billion market pie, focusing on premium services starting in early fiscal year 2026.

E-commerce merchants and platforms are critical, as management has cited that e-commerce will continue to drive 90% of the market's incremental parcel growth in the years ahead. In the first quarter of fiscal 2025, FedEx held a 16.5% parcel volume position in the U.S. domestic market. The overall strategy involves optimizing the network to lower the cost to serve these volumes.

Small-to-medium businesses (SMBs) are a key focus, particularly for the FedEx Freight division, which acknowledged it had not done a good enough job acquiring these smaller customers. The 2025 FedEx Small Business Trade Index showed that 95% of U.S. SMB leaders view global trade as vital to economic growth. Furthermore, 61% of these surveyed SMBs export goods, and 76% import products.

For Individual consumers requiring express or international shipping, the trend shows a preference for value over premium speed. International economy shipments soared to $5.9 billion in revenue for fiscal year 2025. Conversely, international priority revenues declined to $8.7 billion in FY2025 from $10.9 billion in 2023, suggesting clients are favoring cheaper services. The global daily parcel volume handled by FedEx in Q3 FY2025 was 17.1 million packages.

Here's a quick look at the financial scale of some of these key customer-facing areas as of the end of fiscal year 2025:

The customer base is segmented by service level and industry need, which you can see reflected in their service adoption:

• B2B Enterprise: Focus on high-margin, complex supply chain needs.
• Healthcare: Leveraging visibility tools like FedEx Surround for high-value, critical shipments.
• Automotive: New dedicated vertical for premium supply chain support.
• E-commerce: Driving the majority of incremental parcel volume growth.
• SMBs: A priority growth area for FedEx Freight, with high engagement in global trade.
• Consumers: Shifting spend toward economy services over international priority.

Finance: draft 13-week cash view by Friday.

FedEx Corporation (FDX) - Canvas Business Model: Cost Structure

The Cost Structure for FedEx Corporation is heavily weighted toward maintaining its massive physical network and managing significant variable operational expenses. You see this in the scale of their fixed assets required to run a global express network.

High fixed costs stem from maintaining the global air fleet and hub infrastructure. As of late 2025, this included operating nearly 700 aircraft across its network.

Significant variable costs are tied directly to moving packages. These include labor, purchased transportation, and fuel. For fiscal year 2025, total jet fuel costs were reported at $2,832 million. Labor costs are substantial, covering compensation for over 500,000 employees.

Operating expenses also include costs related to ongoing transformation efforts. For instance, in fiscal year 2025, the company faced significant business optimization costs impacting operating income, reported at $756 million. Furthermore, the company achieved $2.2 billion in structural cost reductions through its DRIVE program in FY2025, relative to the FY2023 base.

Capital expenditure (CapEx) saw a deliberate reduction in FY2025 to manage capital intensity. Total CapEx for FY2025 was $4.1 billion, which marked the lowest capital spending level over the past 10 years. This represented a 22% decrease, or approximately $1.1 billion, compared to the $5.2 billion spent in FY2024. The CapEx as a percentage of revenue for FY2025 was 4.6%.

Here's a quick look at some of the key financial figures impacting the cost base for FedEx Corporation in FY2025:

The cost structure is managed through several levers:

• High fixed costs related to the global network, including nearly 700 aircraft.
• Variable costs managed by fuel price fluctuations; FY2025 fuel expense was $2,832 million.
• Labor costs covering a workforce exceeding 500,000.
• Ongoing business optimization expenses, totaling $756 million in one reported category for FY2025.
• Reduced capital intensity, with FY2025 CapEx at $4.1 billion.

FedEx Corporation (FDX) - Canvas Business Model: Revenue Streams

You're looking at the core money-makers for FedEx Corporation as of late 2025. Honestly, the revenue picture is dominated by package volume, but the way they slice and dice those services is key to understanding where the dollars land.

FedEx Corporation finished fiscal year 2025 with consolidated revenue of $87.926 billion. This was a marginal increase, up from $87.693 billion in fiscal 2024.

The revenue streams are primarily organized across the major operating segments, though the company emphasizes that most customers use a bundle of services. For instance, 96.9% of U.S. revenue comes from customers using two or more transportation services.

Here is the breakdown of the full fiscal year 2025 revenue by the main reported segments:

The FedEx Express segment, covering air-based, premium, time-definite services, is the engine, generating $75.3 billion, or 86% of the total revenue. The FedEx Ground component is integrated within this structure, focusing on surface parcel delivery and high-volume e-commerce.

The FedEx Freight segment, which handles less-than-truckload services and is slated for a spin-off by June 2026, contributed $8.9 billion, representing 10% of the total revenue. Revenue for this segment decreased 6% in 2025 due to lower shipments and fuel surcharges, partially offset by base yield improvement.

Revenue from specialized services falls largely under the Other and Eliminations category, which accounted for $3.7 billion, or 4% of total revenue. This stream includes revenue generated by subsidiaries such as FedEx Logistics, Inc., which saw higher yields and shipments contributing to the segment's revenue increase in 2025.

Additional revenue is captured through various surcharges and fees, which help manage network costs and demand fluctuations. For the 2025 peak season, which began in late September/October, specific surcharges were implemented:

• Demand Surcharge for FedEx Ground residential shipments ranged from $0.40 to $0.65.
• Demand Surcharge for certain Express services (Priority Overnight, 2Day, etc.) ranged from $1.05 to $2.10.
• Residential Delivery Charges for higher-volume shippers ranged from $1.55 to $8.75 across applicable services.
• Higher fuel surcharges had a significant positive effect on yields across package and freight services in a prior quarter, though a lower fuel surcharge was noted as a factor in a later total revenue per shipment decline.

Finance: draft 13-week cash view by Friday.