FedEx is the largest air cargo company in the world. Even when domestic service drops the network is not something easily replicated by competition. There’s not really anywhere for all the volume to go. There’s UPS and the post office, that’s it. FedEx has and will continue to destroy its reputation for quality service, but it’ll make money for the foreseeable future.
Spot-on with the reputation comment, but I don't think they really care too much. They will continue to sell the "Absolutely, Positively, Overnight" line along with PSP and all the rest of the BS. At this point, even the Purple People have to see that it's all crap and means absolutely nothing.
Customers are starting to catch-on, and as they do, fewer will be willing to pay for poor Express service. When your vital whatever doesn't get there, next time you call UPS. They are still professional and have excellent service. You get what you pay for, and UPS employees either get it done correctly or they're gone.
Contrast that with the Ground guy in the 20 year-old W700 with a bent frame that hasn't been washed in a year. He noses into your driveway, and throws your package up against the garage because you have stairs. He's wearing a Ross or Goodwill warm-up suit and looks like he's just been released on parole. And, your package is late by about a week.
Over time, people take notice, like when the Ground driver murdered that girl in Texas or when Ground semis are consistently involved in major accidents. I'm not sure who is worse, Ground or Swift. Probably a toss-up. Express employees aren't much better these days, and they keep lowering the bar.
Let's give this a few months and see where it goes and if regulators smell a rat.