FedEx Freight Pushes Forward as LTL Market Remains Soft

In a recent report published by SupplyChainDive, FedEx Freight continues to navigate a challenging less-than-truckload (LTL) environment, reporting a significant decline in operating income for its most recent quarter. Operating income fell to $90 million for the quarter ending November 30, down from $312 million a year earlier, underscoring the ongoing slowdown across the LTL sector.

When adjusted for $152 million in one-time costs related to its upcoming spinoff, operating income improved to $242 million. Even so, weak demand has prompted FedEx to revise its full-year outlook, now expecting flat to slightly lower revenue instead of previous projections for modest growth. Segment revenue declined to just under $2.1 billion, reflecting industry-wide headwinds also affecting competitors.

Despite near-term pressure, FedEx Freight remains focused on long-term strategy. The company is moving ahead with its planned spinoff, scheduled for June 1, 2026, and continues to build out its LTL sales team. With more than 85% of sales roles already filled and full staffing anticipated by June, FedEx Freight is positioning itself to rebound when market conditions improve.