News / FedEx to ground aircraft after weak market forces profit warning

Logistics stocks faced a battering after FedEx withdrew its forecast, following an “earnings miss of epic proportions”.

A trading update released yesterday showed Q1 results were well below expectations, with FedEx Express seeing a revenue shortfall of $500m and FedEx Ground missing revenue forecasts by $300m.

The integrator said its Express division had been affected by macroeconomic weakness in Asia and service challenges in Europe.

FedEx, which has an annual shareholders’ meeting next week, said it had taken “immediate and decisive action to ...