FedEx Squeezes Out Maximum Profit as E-commerce Deliveries Surge Due to Pandemic

FedEx Squeezes Out Maximum Profit as E-commerce Deliveries Surge Due to Pandemic

The U.S. delivery firm FedEx reported a higher-than-expected quarterly profit this week, after price hikes, lower fuel costs, and efficiency gains opposed negative impacts related to a pandemic-fueled surge in e-commerce shipments.

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Shares in the Memphis-based company rose by 7.6% to $254.66 in extended trading. The average package volume for FedEx Ground daily, handling e-commerce deliveries for retailers like Walmart, jumped 31% to 11.6 million during the current fiscal first quarter ended Aug. 31. Revenue per package has risen by 2% to $9.33 during the quarter, which includes one additional business day.

FedEx spent around $565 million on fuel across the company during this quarter, 35% below a year earlier.

To Read More: Reuters