News / FedEx sees Q1 profit drop as labour shortages disrupt services

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“Constrained” labour markets took a bite out of FedEx’s first quarter profits as it recorded a near 12% decrease, leading the integrator to up its rates.

Year-on-year operating income for the three months to August dropped from $1.59bn to $1.4bn, but a 12.3% climb, to $22bn, in revenues seemed to leave chief executive Fred Smith bullish on the company’s direction, even as he bemoaned labour shortages.

Mr Smith said: “The execution of our strategies continues to drive higher demand for services, despite ...