Dahlman Rose & Co: Fedex Corp Retires 67 Aircrafts
According to a research report this morning, Fedex Corp (NYSE: FDX) puts to rest 67 older aircrafts in an effort to restructure their fleet.
Dahlman Rose & Co explained, “FedEx will accelerate the retirement of 18 A310-200 and 26 related engines and six MD-10-10 and 17 related engines. The aircraft to be retired are currently parked and not in revenue service. FedEx will replace these aircraft with more fuel-efficient B767-300s and B757-200s. Due to the early retirement of these aircraft, FedEx will accelerate depreciation on these assets and expects an impact of $196 million.”
Fedex Corp closed yesterday at $85.20 as Dahlman Rose & Co reiterates its Buy rating and $104 PT.
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