FedEx Resumes MD-11 Fleet Operations Following FAA Clearance

Key Facts

1FedEx has resumed the use of its MD-11 fleet after the FAA lifted a grounding order.

2The grounding caused FedEx a $120 million headwind last quarter due to higher costs and lost revenue.

FedEx has officially resumed operations of its MD-11 cargo fleet following the Federal Aviation Administration's (FAA) decision to lift a previous grounding order. The grounding had imposed a significant financial burden on the company, resulting in a $120 million headwind last quarter driven by increased operational costs and lost revenue opportunities.

This operational restoration comes at a critical time for the logistics sector, as market data shows intense competition with peer UPS, whose prior safety incidents triggered the initial regulatory scrutiny. Compared to previous periods, FedEx is moving to stabilize margins that were pressured by the high costs of chartering third-party capacity or utilizing less efficient aircraft during the grounding period.

Investors are now focused on how quickly the fleet reintegration will optimize global delivery networks. On the macro front, recent trade data from Germany (as of May 8, 2026) showing a 14.3 billion euro trade balance suggests a steady environment for the international shipping volumes that are vital to FedEx's long-term growth strategy.