FedEx is expected to take a financial hit of approximately $120 million in the third quarter of FY26 due to the grounding of a portion of its MD-11 freighter fleet, impacting operational capacity and network efficiency.
The temporary grounding, linked to maintenance and technical checks, has constrained available lift during a critical period, forcing the company to adjust flight schedules and rely on alternative capacity. This has led to higher operating costs and disruptions across certain long-haul cargo routes.
FedEx stated that it is actively working to restore the MD-11 fleet to full service, while implementing contingency measures including aircraft substitutions and network realignments to minimize service impact.
Despite the setback, the company continues to focus on maintaining service reliability and meeting customer demand, particularly across key international markets. Industry analysts note that while the financial impact is significant, it is likely to be short-term as fleet operations normalize in the coming months.