Originally Posted by
Fdxlag2
I am not sure you know what the term unsustainable means. Do you think they are losing money filling the airplane with a marginal decrease in pricing? If so provide evidence.
Read all the info relating to the recent stock price decline. TNT plus rapidly shrinking profit margins. Maybe not loosing money, but further squeeze of net margins absolutely. It is listed on 10Q/10K, acknowledged my management and not liked at all by Wall Street. Fedex/UPS already operate on thin margins, this will only make it worse. To the point of loosing money? Very unlikely.
And by the way, “marginal decrease in pricing”? I don’t think so. Ground to Express is around 30-40% higher. So charging ground (with it’s cost structure) for a much more expensive unit cost delivery charge service like Express IS a big difference.