FedEx Express has announced that it will face peak-season costs of approximately USD 175 million due to the grounding of its MD-11F fleet following a fatal accident involving a similar aircraft operated by UPS Airlines. The company indicated that most of these costs will be incurred in December, adding to the USD 25 million already spent in November. The fleet grounding is expected to last until May 31, 2026, when FedEx's fiscal fourth quarter concludes.
The grounding was initiated in early November after a crash involving a UPS Airlines MD-11F departing Louisville International Airport. FedEx Chief Financial Officer John Dietrich highlighted that the cessation of MD-11F operations has disrupted the company's logistics network, prompting increased trucking of freight within the United States and other contingency measures.
Operational and Strategic Response
FedEx, which operates 58 MD-11Fs according to data from ch-aviation, is actively seeking replacement options to maintain service levels. UPS Airlines has 26 units, and Western Global Airlines operates 14 MD-11Fs. FedEx plans to retire its MD-11F fleet entirely by 2032, amid ongoing adjustments to its fleet strategy. The incident has also compelled other companies within the industry to adapt quickly, with some reducing personnel and accelerating fleet renewal plans.
This situation underscores the importance of safety protocols and the impact of fleet groundings on global logistics and freight operations. FedEx aims to return its MD-11Fs to service by late May 2026, minimizing further disruption in peak season operations.
