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Amazon unlikely to hurt FedEx as sales said to soar to US$13.8 billion
US COURIER giant FedEx is soon expected to report quarterly revenues of US$13.8 billion, up from $12.3 billion during the same period last year.
FedEx's revenue has steadily increased since 2009, mainly due to the explosion of e-commerce, according to News.Markets.
Said FedEx CEO Frederick Smith: "Fiscal 2016 was a successful year for FedEx. Of particular note was our corporate operating margin improvement."
This increased to $1.14 billion against $1.06 billion the previous year.
In August, Amazon announced the launch of Amazon Prime Air and its first ever branded air cargo plane.
The e-commerce giant has started to invest in its own courier company in effort to reduce overall shipping costs and become less reliant on traditional carriers like FedEx and UPS to handle its increasingly high capacities.
Amazon has leased 40 Prime Air cargo planes from Atlas Air, of which 11 are in service.
"Creating an air transportation network is expanding our capacity to ensure great delivery speeds for our Prime members for years to come," said Amazon vice president Dave Clark.
At the time of the announcement, investors worried it would dent FedEx and UPS deliveries. But Amazon only takes up two to five per cent of UPS and FedEx revenues, so many believe there's no cause for concern in the short term.
FedEx's $4.8 billion acquisition of TNT Express is "the largest acquisition in FedEx history, and its benefits are expected to be equally significant," said Mr Smith when the tie up was finalised in May this year.
The move makes FedEx the second largest courier in Europe, and it plans to continue to increase its market share in an area, worth a total of $60 billion, where it has historically trailled UPS and DHL.
FedEx's revenue has steadily increased since 2009, mainly due to the explosion of e-commerce, according to News.Markets.
Said FedEx CEO Frederick Smith: "Fiscal 2016 was a successful year for FedEx. Of particular note was our corporate operating margin improvement."
This increased to $1.14 billion against $1.06 billion the previous year.
In August, Amazon announced the launch of Amazon Prime Air and its first ever branded air cargo plane.
The e-commerce giant has started to invest in its own courier company in effort to reduce overall shipping costs and become less reliant on traditional carriers like FedEx and UPS to handle its increasingly high capacities.
Amazon has leased 40 Prime Air cargo planes from Atlas Air, of which 11 are in service.
"Creating an air transportation network is expanding our capacity to ensure great delivery speeds for our Prime members for years to come," said Amazon vice president Dave Clark.
At the time of the announcement, investors worried it would dent FedEx and UPS deliveries. But Amazon only takes up two to five per cent of UPS and FedEx revenues, so many believe there's no cause for concern in the short term.
FedEx's $4.8 billion acquisition of TNT Express is "the largest acquisition in FedEx history, and its benefits are expected to be equally significant," said Mr Smith when the tie up was finalised in May this year.
The move makes FedEx the second largest courier in Europe, and it plans to continue to increase its market share in an area, worth a total of $60 billion, where it has historically trailled UPS and DHL.
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