FedEx Express segment’s fiscal 1Q18 revenues
In fiscal 1Q18, FedEx’s (FDX) Express segment’s overall revenues totaled $8.6 billion, compared with $8.5 billion in fiscal 1Q17. This translates into a YoY (year-over-year) rise of 2.3%.
FDX started consolidating TNT Express’s revenues with its Express segment in fiscal 1Q18. The Express vertical remains the largest contributor to FedEx’s total revenues, accounting for 57%.
In fiscal 1Q18, US domestic Express package revenues were ~$3.1 billion, or 3.5% higher than its $3.0 billion in fiscal 1Q17. The US deferred average daily package volume rose 6.3%, compared with the 4.4% fall in US overnight average daily package volumes in 1Q18.
The Express division’s domestic yield grew 4.6%, though the average daily package volumes fell 1.1% YoY in fiscal 1Q18. International Express package revenues grew 4.3% to $2.5 billion from $2.4 billion in 1Q17, and the package yield of international export packages rose 2%. Notably, these yields were slightly higher after excluding the impact of fuel and exchange rates.
An 11.1% rise in the international economy revenues led to the revenue growth in fiscal 1Q18. This division witnessed 6% growth in average daily package volumes, while international domestic service’s volumes expanded almost 5%.
FedEx is looking for improvements in the Express vertical network, which includes expansion in Europe. On September 18, 2017, FDX announced its plan to raise shipping rates by 4.9% in the Express segment. In February 2017, FedEx started adjusting its Express segment’s fuel surcharge on a weekly basis.
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Next, we’ll consider FedEx’s Ground segment’s results in fiscal 1Q18.