FedEx Said to Plan Order of 30 Wide-Body Boeing Freighters - Bloomberg
FedEx Corp. (FDX) plans to buy about 30 Boeing Co. (BA) wide-body freighters to replace older, less fuel- efficient jets, three people familiar with the matter said. The planes would be valued at about $5.26 billion at list prices.
While the planned freighter order was necessary given FedEx’s aging fleet, it may also indicate that the company doesn’t expect a recession soon, according to Sterling, who recommends buying the shares.
“It’s more kind of out of necessity, to get a younger fleet, to get one that’s a little more efficient,” he said in a telephone interview. “On the other hand, you’re not going to spend $5 billion to have a bunch of planes sitting idle. So I think in a roundabout way it does speak to, ‘at least they feel that things are OK.’”
FedEx Corp. (FDX) plans to buy about 30 Boeing Co. (BA) wide-body freighters to replace older, less fuel- efficient jets, three people familiar with the matter said. The planes would be valued at about $5.26 billion at list prices.
While the planned freighter order was necessary given FedEx’s aging fleet, it may also indicate that the company doesn’t expect a recession soon, according to Sterling, who recommends buying the shares.
“It’s more kind of out of necessity, to get a younger fleet, to get one that’s a little more efficient,” he said in a telephone interview. “On the other hand, you’re not going to spend $5 billion to have a bunch of planes sitting idle. So I think in a roundabout way it does speak to, ‘at least they feel that things are OK.’”
