DOT Orders FedEx to Repay $29 Million

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edEx Corp. said Friday the Department of Transportation had ordered the company to repay $29 million of the funds its air freight unit, FedEx Express, received under the 2001 Air Transportation Safety and System Stabilization Act.

The act provided financial relief to air carriers impacted by the 9/11 terrorist attacks.

FedEx said in a statement DOT determined it was entitled to $72 million in compensation, which was an increase of $3 million from its previous determination, but well below the $101 million it initially received.

Although the company said it would "vigorously contest this determination judicially," it planned to record a charge of $48 million in its fiscal 2005 second quarter, representing the repayment and a write-off of $19 million.

FedEx said it still expected second-quarter earnings to be $1.10 to $1.20 per share. The company is ranked No. 2 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies.