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<blockquote data-quote="59 Dano" data-source="post: 4528193" data-attributes="member: 23516"><p>If the company saved $1 net per package in labor/jet fuel/other expenses on every package and they do 100,000 of these packages a day? That's $100,000 saved, or in theory, extra profit for Express (which goes to shareholders and FS yay!). Anyway, just spitballing on those numbers but a daily amount saved could end up being a pretty good chunk of change in 12 months' time. And if sales can sell that free cargo space now available on the planes to high dollar shipments, even better (I lol'd typing that last line).</p></blockquote><p></p><p>From FY19 annual report...</p><p></p><p>Deferred freight accounted for just over a million pieces of freight per day, $4.2 billion in revenue for the year, and collects just over $15 of revenue per piece. </p><p></p><p>They're going to save well beyond a buck a package on those. They're resis, and it will be rural areas that are most affected. The Express expense for these will be the pickup, PM sort at the origin station, and transportation to the ramp. </p><p></p><p></p><p></p><p>People are overreacting.</p><p>[/QUOTE]</p>
[QUOTE="59 Dano, post: 4528193, member: 23516"] If the company saved $1 net per package in labor/jet fuel/other expenses on every package and they do 100,000 of these packages a day? That's $100,000 saved, or in theory, extra profit for Express (which goes to shareholders and FS yay!). Anyway, just spitballing on those numbers but a daily amount saved could end up being a pretty good chunk of change in 12 months' time. And if sales can sell that free cargo space now available on the planes to high dollar shipments, even better (I lol'd typing that last line).[/QUOTE] From FY19 annual report... Deferred freight accounted for just over a million pieces of freight per day, $4.2 billion in revenue for the year, and collects just over $15 of revenue per piece. They're going to save well beyond a buck a package on those. They're resis, and it will be rural areas that are most affected. The Express expense for these will be the pickup, PM sort at the origin station, and transportation to the ramp. People are overreacting. [/QUOTE]
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