Federal Express Q2 Revenue Declined In 2019, Declining Profitability

On August 19th, the latest report released by FedEx's Airborne Inc Federal Express showed that its operating income in the second quarter of 2019 has declined, which is rooted in the decline of global economic growth.

According to the International Air Transport Association, due to the global economic slowdown, the global air transport market in 2018 has developed well, but the overall growth rate is obviously lower than that in 2017. Coupled with the increasing trade frictions between China and the United States, international air cargo flows continue to decline. In the overall downturn of the air cargo market, FedEx's real profitability is declining.

While the profitability of the FedEx air transport business is declining, Amazon is making efforts to build an air transport network and increasingly threatens the Federal Express. Although FedEx, United Parcel company and Amazon have denied the possibility of Amazon becoming a third party logistics company for many years, Amazon is building its own logistics network.

Since 2015, Amazon has been committed to building an air transport network. At present, there are 40 cargo planes, although the number is less than 681 of FedEx. But Amazon's air transport network is more efficient and faster. In 2018, Amazon achieved almost two Tianda in the United States through its own air traffic capability.

In contrast, FedEx itself is also troubled by negative news while its revenue is declining. In the parcel of FedEx, which was recently sent to Fuzhou, Fujian, China, police found that a gun was caught, which shocked the outside world.

If the parcel sent to China before the United States sent a package to the US mission is a mistake, then the alleged illegal shipment of illegal products, will seriously affect the safety of the company. For any logistics enterprise, safety is always the first priority.