Originally Posted by
Noworkallplay
Take a listen or read of the earnings call. CAPEX for 2020 and 2021 is in line with 2017-2019. This is what drove some confusion from some of the big investment firm folks on the call. They asked in a nut shell “so if you are making cuts why is the capex basically unchanged?” Thats when Fred got a little testy and said “look guys we have to replace older airplanes. Look at the data attached to the call for the reasons. Fuel savings, maintenance, reliability, etc.” We are not overstaffed currently we are just miss staffed and not balanced from the growing fleets to the dying fleets. Take a look at the airplanes that are to be retired in the next 2 years and then compare that number to the firm order deliveries we have over that same period. Guess what its a net gain or a wash at worst. The sky isnt falling this is a natural business cycle like all companies go through. Its probably a good wakeup call/innovation booster for the top brass at purple.
Agreed, if you didn’t listen to the call it’s hard to sift through all of the spin put on by the media. Make no mistake FedEx fell way short, but it’s not the whole story. Wall Street is obsessed with short term success which perpetuates the narrative of doom and gloom for purple. While there are many challenges with some “mistakes” made in the past, to me it is believable that FedEx is doing the best it can to position themselves for long term success and is what I value most.
Regarding another post above I don’t think it makes sense to stop hiring for 2020 although we will all surely find out in the near future. I think it will slow but in my eyes hiring must continue.