FW: FedEx braces for 50% cut in Postal Service air contract

© Grzegorz Kieca

FREIGHTWAVES reports:

FedEx Corp. expects its air express unit will lose half of its business with the U.S. Postal Service when an existing contract expires, making more pilots expendable, FreightWaves has learned.

The Postal Service three years ago began shifting a large amount of volume from air to ground transportation to reduce red ink and become more competitive. Declining postal volumes have been a significant drag on FedEx Express’ recent performance, company officials publicly acknowledge…

The full post is here (please note this is not totally unexpected if you joined the last call between management and sell-side analysts before Christmas).