FedEx Extends Peak Surcharges Into 2021
December 18, 2020
FedEx announced this week it is extending peak surcharges beyond the holiday season, while lowering them from higher holiday levels, citing the expectation of ongoing heavy volume and associated costs, although some observers question that rationale amid strong financial results.
FedEx just reported GAAP net income more than doubling in Q2 to $1.23 billion or $4.55 per share, ahead of a consensus of $4.01 per share, while revenue increased 19% to $20.6 billion.
The major carrier said the changes will be in place “until further notice” and called them “peak” not “temporary,” signaling a longer-term effect. They cover domestic air and ground and international ground services.