FedEx orders 27 Boeing 767s in fleet upgrade

FedEx Corp said on Thursday it has ordered 27 new Boeing Co 767-300F aircraft worth $4.7 billion at list prices as it plans to retire some of its aging aircraft.

The company also has exercised options for two additional Boeing 777 freighters.

The world’s No. 2 package delivery company said three of the 767s would be delivered in fiscal 2014 and six per year in fiscal 2015-2018. FedEx said the 767s will replace FedEx Express’ MD10 aircraft with a 30 percent increase in fuel efficiency and a 20 percent reduction in unit operating costs.

FedEx has also been considering the competing Airbus EADS A330 for its upgrade, according to sources.

The company also said it would delay delivery of 11 larger 777 freighters it has on order.

Softening cargo traffic has caused some airlines to rethink their freighter purchases in recent months. The International Air Transport Association (IATA) has warned of further declines after a significant cargo market deterioration in the third quarter.

FedEx is the largest operator of 777 freighters, with 17 aircraft in operation and with orders and options for an additional 41 aircraft, Boeing said.

Earlier on Thursday, FedEx reported a higher-than-expected quarterly profit.