On June 1, 2024, FedEx Ground and FedEx Services were merged into Federal Express, becoming a single company operating a unified, fully integrated air-ground express network under the FedEx brand, as part of the One FedEx initiative.

FedEx has implemented Network 2.0 in more than 50 locations in the U.S., and the phased transition of legacy FedEx Ground operations and personnel in Canada to Federal Express surface operations began in April 2024.

In June 2024, FedEx's management and Board of Directors announced they are conducting an assessment of the role of FedEx Freight in the company's portfolio structure, indicating a potential strategic shift.

The DRIVE program, a comprehensive plan to improve long-term profitability, contributed to the 13% increase in operating income through network rationalization, route optimization, and improved hub sort efficiency.

Operating expenses decreased by 4% in 2024, reflecting benefits from cost optimization initiatives, including reduced fuel usage, lower outside service contracts, and reduced maintenance and repairs.

Management is focused on improving efficiency and asset utilization through the implementation of Network 2.0 in the U.S. and Canada and the redesign of the international air network through the Tricolor program.

The transportation industry is highly cyclical and susceptible to economic trends, and geopolitical risks such as the Russia-Ukraine conflict and tensions in the Middle East may adversely affect business and results of operations.

The integration of FedEx Ground and FedEx Services into Federal Express, while completed legally, may result in higher costs, less-than-expected savings, loss of customers, and other unexpected issues.

FedEx is subject to risks imposed by data breaches, cyberattacks, and other events that could damage, disrupt, or close down networks or systems, and could result in the loss of sensitive or confidential information.

The U.S. domestic and international package and freight markets are highly competitive and sensitive to price and service, with competitors including UPS, DHL, and regional carriers, as well as in-house delivery capabilities of some high-volume shippers.

As the service mix continues to shift to deferred services, FedEx is continuing to evolve to improve operational efficiency and enhance profitability through one FedEx, Network 2.0, and DRIVE.

Some high-volume package shippers, such as Amazon.com, are developing and implementing in-house delivery capabilities and utilizing independent contractors and delivery service providers, and may be considered competitors.

FedEx is focused on reducing its permanent cost structure, aligning its cost base with demand, and increasing the flexibility of its network through the DRIVE program.

The Network 2.0 initiative is a multi-year effort to improve the efficiency with which FedEx picks up, transports, and delivers packages in the U.S. and Canada, and is supported by the consolidation of FedEx Ground and Services into Federal Express.

FedEx is implementing dynamic scheduling tools at many U.S. surface facilities to match sort staffing with volumes and is introducing capabilities to allow certain packages to bypass station sortation and proceed directly to vehicles.

FedEx is leveraging the capabilities of FedEx Dataworks and developments in data and technology, including AI and machine learning, to improve operational efficiency and enhance customer experience.

FedEx announced fdx, a fully integrated data-driven commerce platform that connects the entire customer journey, providing data and insights to improve visibility and connected capabilities.

FedEx is exploring the use of autonomous delivery technology within its operations, including testing Nuro's next-generation autonomous delivery vehicle and Aurora's autonomous driving technology in PACCAR trucks.

In March 2024, the Board of Directors authorized a new stock repurchase program for additional repurchases of up to $5 billion of FedEx common stock, signaling management's confidence in the company's value.

Capital expenditures for 2025 are expected to be approximately $5.2 billion, in line with 2024, as FedEx continues to invest in network optimization and modernization of its facilities.

FedEx is focused on making appropriate investments in technology and assets necessary to optimize long-term earnings performance and cash flow, and bases decisions on achieving the highest overall long-term return on invested capital.

FedEx announced a goal to achieve carbon neutrality by calendar 2040 across its global operations' Scope 1 and Scope 2 GHG emissions and Scope 3 contracted transportation emissions.

To help reach its carbon neutrality goal, FedEx designated $2.0 billion of initial investment towards vehicle electrification, sustainable energy, and carbon sequestration.

FedEx is committed to maintaining an inclusive culture where everyone is treated with respect and has an opportunity for advancement and promotion, and is conveyed through its DEI&O framework.

The decline in U.S. imports of consumer goods and slowed global industrial production has contributed to weakened economic conditions for the transportation industry, leading to lower freight and package volumes.

In 2024, FedEx continued to see customer preference for slower, less costly shipping services and experienced lower fuel surcharges at all of its transportation segments.

FedEx is experiencing a decline in demand for its transportation services as inflation and high interest rates are negatively affecting consumer and business spending.