“By the end of FY ‘25, about 12% of our average daily global volume will flow through network 2.0 optimized facilities.”

In context

“of our revenue comes from non-U.S. intra-country or intra-regional services. And from a bilateral U.S. trade perspective, our biggest single-country exposure represents only about 2.5% of total revenue. Against this backdrop, we remain focused on what we can control. First, Q3 drive savings continued to ramp and were in line with our expectations. We expect to achieve our incremental target of $2.2 billion for FY ‘25 and our total of $4 billion of our FY ‘23 baseline. Second, we are creating a more flexible, efficient and intelligent network. As planned, we resumed network 2.0 conversions following peak. We have optimized five U.S. stations since the beginning of the calendar year and expect to optimize 45 more in Q4. We are on track to complete the rollout in Canada by the end of April. By the end of FY ‘25, about 12% of our average daily global volume will flow through network 2.0 optimized facilities. Third, Tricolor is driving better asset utilization as we improve aircraft density and better leverage our surface network. We have a broad range of KPIs that we are tracking to measure our progress. We're especially pleased that on a year-over-year basis, payloads across our air network are up 9% with a 5% improvement in density. This is a key objective of our Tricolor operating model. Importantly, our progress is leading to positive flow-through on revenue growth from international export freight. Fourth, our planned transition away from the U.S. Postal Service contract is going well and we are continuing to remove costs associated with the expired contract. Fifth, our freight separation work is underway. John will share more details shortly. And lastly, we are providing our customers w”