FedEx Retiring 24 Jets to Cut Costs

FedEx Corp. said it has retired 24 jets to reduce capacity in its U.S. Express division, and will take an $84 million, or 26 cents–per-share, charge in its fiscal fourth quarter that ended May 31.

Taking 18 Airbus SAS and six Boeing Co. freighters out of service added to five jets grounded last quarter and planned retirements of 21 more in FedEx’s 2013 fiscal year, Bloomberg reported, citing the company.

“Along with the decisions to retire these 50 aircraft, we are also developing detailed operating and cost structure plans to further improve our efficiency,” David Bronczek, FedEx Express’ CEO, said in a statement.

FedEc Corp. is ranked No. 2 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.