FedEx Seen With Multiple Headwinds in Second Half of Fiscal Year -- Market Talk

Dow Jones03:12

1412 ET - FedEx is facing several headwinds heading into the back half of the fiscal year, posing a "tale of two halves" after momentum in the first half, JPMorgan analysts say in a note. The analysts point to cost headwinds related to accelerated hiring in the company's freight division, which continues to lose fundamental momentum, they say. Costs associated with the grounding of all MD-11 planes after a UPS cargo plane crash also pose an obstacle, even if they could be viewed as temporary, they say. "FedEx will ultimately need to replace or upgrade aircraft that cannot be retired through efficiency gains or network reorganizations," they say. (kelly.cloonan@wsj.com)

 

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December 19, 2025 14:12 ET (19:12 GMT)

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