bitwiser

Nah I'll take a furlough before I take a contract that isn't industry leading. Nice try though. FUPM

DaRaiders

Why would he do that? It’s what he gets paid to do.

VamosALaPlaya

You obviously don’t understand the concept of net income as a % of revenue, which is utilization of your assets to generate money, which Fedex is extremely poor. Guess we are back to fantasy land valuation.

Stan446

You are killing me. I haven't laughed this hard in a while. If you are so worried about Purple failing or getting a contract that doesn't fit your exact expectations, I suggest you leave the airline industry. In two to three years the other majors will be complaining how things suck there, its a never ending cycle. Look back at any of the AA, DAL or UAL post from 3-4 years ago and see how rosey things were.

Coffeepilot1

That’s what I read as well. So 15 aircraft temporarily parked. We are still delivering the following.
2023
10-76’s
1-77
2024
14-76’s
4-77’s
2025
10-76’s
2-77’s
Correct me if Im wrong…. That’s still growth.

LuckyvsGood

from the transcript

”This requires many steps, including plans currently being developed to phase out our fleet of MD-11s”

https://seekingalpha.com/article/458...all-transcript

Coffeepilot1

Yes plans to phase it out, that will take years. This has been known since 2019 they are going away and will be replaced in some shape or form of the future fleet. Currently parked 6 and 9 will be parked in last qtr.

opt0712

Yes. I heard that as well. We know the MD is going away, but "phasing out" the MD could take 5-10 years. And has been said for years already. This is nothing new.

wrxpilot

Operator

Our next question is from Jordan Alliger of Goldman Sachs.

Jordan Alliger

I was wondering if you could give a little more color on the cost takeout sort of for the balance of the year. I think the slides had it at around $2.4 billion. I think the total is something like $3.7 billion, with $1 billion being permanent. Can you maybe give some update around that? And is there a way to get a sense for how much so far can be attributable to the Express business in terms of cost takeout, maybe the permanent -- at least the permanent side? Thanks.

Mike Lenz

So okay, Jordan, the -- yes, we will -- the $1 billion of permanent that Raj alluded to, we will realize that this year. The bulk of that is at Express, and we will see more traction on that, particularly in Q4 here. We’ve highlighted the flight frequencies that we’ve been reducing. We have -- we had -- as Raj said, we had nine more aircraft parked during the third quarter, and we’re projecting to park six more during the fourth quarter. So, that is illustrative of the takedowns and reductions underway there. And then also another component of the $1 billion, was taking out investments in that and initiatives and projects that we don’t anticipate picking up.

schloppy1

The specific question about fleet planning was directly dodged by Raj. I did hear 4.7 billion returned to investors in 2023. We’re definitely making money. And finally, we may be compensated well below our peers, but at least we work for one of the most ethical companies in the world. One of the most admired as well!