8-KEarnings & ResultsLeadership ChangesMaterial Agreements+1

FEDEX CORP 8-K Report, Material Agreement (Jun 24, 2021)

Filed June 24, 2021For Securities:FDX

Summary

FedEx Corporation (FDX) announced a significant fleet expansion through a material definitive agreement with Boeing. FedEx Express has exercised options to purchase an additional 20 Boeing 767-300 Freighter (B767F) aircraft, with deliveries scheduled for fiscal years 2024 and 2025. This move increases FedEx Express's firm orders for B767F aircraft to 48, with deliveries extending through fiscal year 2025. The company also retains options for an additional 50 B767F aircraft. This strategic acquisition aims to enhance the efficiency and reliability of FedEx's aircraft fleet, supporting its long-term operational capacity. The filing also noted the resignation of John C. "Chris" Inglis from the FedEx Board of Directors following his confirmation as the U.S. National Cyber Director.

Key Highlights

  • 1FedEx Express entered into Supplemental Agreement No. 16 with Boeing to purchase 20 additional B767-300 Freighter aircraft.
  • 2Deliveries for these 20 aircraft are scheduled for fiscal years 2024 (10 aircraft) and 2025 (10 aircraft).
  • 3This brings FedEx Express's total firm orders for B767F aircraft to 48, with deliveries planned through fiscal year 2025.
  • 4FedEx Express also holds options to purchase an additional 50 B767F aircraft.
  • 5The new aircraft are intended to improve the efficiency and reliability of FedEx's fleet.
  • 6Two of the additional B767F purchases are contingent on FedEx Express and its employees remaining covered by the Railway Labor Act.
  • 7John C. "Chris" Inglis resigned from the FedEx Board of Directors.

Frequently Asked Questions

The agreement signifies a substantial investment in FedEx's future fleet capacity. By purchasing 20 additional Boeing 767-300 Freighter aircraft, FedEx is proactively expanding its operational capabilities, aiming to enhance fleet efficiency and reliability to meet growing global demand.

The 20 new B767F aircraft are scheduled for delivery in fiscal years 2024 and 2025. With this addition, FedEx Express has a total of 48 firm orders for B767F aircraft scheduled through fiscal year 2025, and maintains options for another 50.

Yes, two of the 20 additional B767F aircraft purchases are conditional. Their purchase is contingent upon FedEx Express and its employees continuing to be covered by the Railway Labor Act (RLA) of 1926, as amended.

In addition to the fleet expansion, the filing also reported the resignation of John C. "Chris" Inglis from the FedEx Board of Directors. His departure is due to his confirmation to serve as the United States National Cyber Director.