FDX, Pilots Reach Tentative Agreement

FDX Corp. and its pilots union reached tentative agreement on a labor contract that would improve pilot pay and schedules at Federal Express, the union said. Earlier in the day, FDX said its profit rose 22% in the fiscal second quarter but warned that costs to prepare for a threatened strike by the pilots would hurt earnings in the next two quarters. A union spokesman wouldn’t disclose details of the contract, which would be the first at FedEx if ratified by the 3,300 union pilots. The pilots, who earn an average of $142,000 a year, had been seeking a 17% raise over five years. FDX earned $183 million, or $1.23 a share, in the latest quarter, far exceeding estimates of $1.06, as it benefited from low fuel prices and kept a lid on costs. Revenue rose 6.8% to $4.21 billion.