FedEx has reinstated four McDonnell Douglas MD-11 freighters since the Federal Aviation Administration cleared the aircraft type to resume flying seven weeks ago, while also retiring five MD-11s last quarter, executives said Tuesday. The remaining 25 grounded MD-11s will be repaired and returned to service in time for peak shipping season in the fourth quarter, according to CEO Raj Subramaniam on an earnings call.
FAA Clearance and Repairs
The FAA in early May cleared MD-11 operators to resume commercial service after Boeing developed a new part to address a design flaw that can allow fatigue cracks to spread in the plane’s engine pylon, according to FreightWaves. The action followed a UPS MD-11 freighter crash during takeoff in November when the left engine separated from the wing. FedEx is removing engine pylons from grounded aircraft and shipping them to maintenance hubs in Indianapolis and Memphis, Tennessee, where technicians replace a critical bearing.
Fleet Changes and Charges
FedEx (NYSE: FDX) reported a $23 million charge in its fiscal fourth quarter (ended May 31) to write down the value of 10 retired aircraft, including five large MD-11 freighters. Additionally, the company retired four Boeing 757-200 narrowbody freighters and one Airbus A300-600. Over the same period, FedEx took delivery of seven 767-300 production freighters from Boeing, resulting in a net decline of three aircraft from 2025, according to financial documents. Over the last four years, FedEx has removed 34 cargo jets from the fleet — an 8% reduction versus fiscal year 2022. As of the latest quarter, the mainline fleet consists of 383 aircraft, down from 389 in fiscal year 2024.
| Aircraft Type | Retired in Q4 | Delivered in FY | Net Change (FY2026 vs FY2025) |
|---|---|---|---|
| MD-11 | 5 | 0 | -5 |
| Boeing 757-200 | 4 | 0 | -4 |
| Airbus A300-600 | 1 | 0 | -1 |
| Boeing 767-300 | 0 | 7 | +7 |
| Total | 10 | 7 | -3 |
MD-11 Fleet Status and Other Operators
FedEx began operating two MD-11s on domestic routes on May 10. CEO Raj Subramaniam confirmed that four MD-11s have been fixed and are back in service. The remaining 25 aircraft will be prepared to support peak shipping season during the fourth quarter. Previously, FedEx records showed 34 MD-11s on its books, while UPS had 29 active MD-11s (including four spares) before the accident. UPS opted to permanently retire its entire MD-11 fleet after the Louisville disaster. Western Global Airlines, the only other U.S. MD-11 operator, has reactivated two MD-11s, flying under military contracts with the Pentagon to bases in Europe, according to aviation tracking site Flightradar24.
Strategic Shift to Deferred Air Cargo
FedEx postponed the full retirement of the MD-11 fleet from 2028 until 2032 because it wanted more widebody capacity to meet rising demand as it makes a strategic shift to capture more international non-parcel freight from logistics providers. Despite higher fuel burn and lower maintenance reliability compared to modern twin-engine planes, the tri-engine MD-11 remains useful due to its long range and high cargo capacity. Since 2024, FedEx has prioritized the $80-to-$90 billion deferred air cargo market, especially the premium segment. The company reorganized its air network into express parcel and deferred freight segments to maximize aircraft density and sorting efficiency. A portion of its airline now operates an international daytime schedule for heavy freight that doesn't require maximum speed, integrating air and road networks in a truck-fly-truck delivery model. Management describes this deferred air network as an extension of its European and U.S. less-than-truckload networks, targeting high-yield freight such as pharmaceuticals, perishables, electronics, and automotive components.
Implications for Shippers and Operators
With four MD-11s back in service and 25 more expected by peak season, FedEx is adding widebody capacity to its network. This should provide more available capacity for air freight during the fourth quarter, particularly on long-haul routes where the MD-11’s range is valuable. However, the aircraft’s higher fuel burn and maintenance demands may lead to higher operating costs, potentially affecting rates. Shippers in sectors like pharma, perishables, and electronics may benefit from FedEx’s expanded deferred air service, which offers a cost-competitive alternative to express air freight. The retirement of older aircraft and addition of 767-300s improves fleet efficiency overall.
Watch List
- Maintenance progress: The timeline for fixing the remaining 25 MD-11s and their readiness for peak season.
- Demand trends: Strength in the deferred air cargo market and impact on capacity utilization.
- Competitor actions: Western Global’s military contracts and potential reactivation of more MD-11s; UPS’s permanent retirement of its MD-11 fleet.
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