FedEx buys 24 new Boeing aircraft worth $6.6 billion

FedEx has ordered 24 new cargo aircraft from Boeing, worth $6.6 billion.

The order includes 12 Boeing 767s and 12 Boeing 777s, which are cargo aircraft. The order is intended mainly to replace older, aging aircraft in FedEx’s existing fleet, such as the McDonnell Douglas MD-11s, and will not add much capacity.

This is in addition to 53 767s and six 777s that are already on order for FedEx Express.

David Bronczek, President and COO of FedEx, said, “We’ve added very few incremental planes along the years here. On the other hand, if we continue to see strong growth like we’re seeing now we could use them to add capacity.”

The purchase follows a rebound in global air shipments last year, which has given Boeing cause to increase their annual output. Production of 767s will increase 20%, to 36 planes, by 2020, the company announced last month. The 767 the oldest model in Boeing’s catalogue but it’s still favoured by companies like FedEx and Amazon.

Should you be considering adding a Boeing to your own fleet, the 767 currently sells for $212.2 million, while the 777 is available for $339.2 million.

(Source: Bloomberg)