“We remain confident that we will deliver our targeted $2.2 billion in incremental savings in FY’25.”

In context

“the timing shift of Cyber Week. This is evidence that our transformation is clearly working. Similar to last quarter, we experienced weakness in the industrial economy, which negatively affected our B2B volumes, particularly in the U.S. domestic package and the LTL markets. Continued market pressure coupled with difficult year over year comparisons weighed on our Freight segment in the second quarter. With B2B revenues comprising nearly 60% of our package business and 90% of our LTL business, we are well-positioned for profitable growth when the industrial economy recovers. Against this backdrop and in support of evolving market dynamics, we continue to create a more flexible, efficient and intelligent FedEx as we deliver for our customers. We achieved DRIVE savings of $540 million in Q2. We remain confident that we will deliver our targeted $2.2 billion in incremental savings in FY’25. Our Network 2.0 rollout continued and the Canadian market integration will be largely complete in early calendar year 2025. With the expiration of the U.S. Postal Service contract, we are strategically matching capacity with demand and flexing the network as needed to transport packages more efficiently. At the end of September, we reduced our U.S. domestic daytime flight hours by nearly 60% and swiftly began to reduce other associated costs. And we delivered solid service for our customers. This is always our priority and especially important during peak. I'm very pleased with how our teams are navigating a condensed period between Thanksgiving and Christmas. So far during peak, they are delivering more packages per day on average, while maintaining the high quality shipping experience t”