June 3, 2013 / 10:24 PM / 5 years ago

FedEx hastens retirement of aircraft

(Reuters) - FedEx Corp FDX.N said on Monday it will permanently retire or will hasten the retirement of 86 aircraft and more than 300 engines as the package delivery company modernizes its fleet.

Couriers load packages onto vehicles as other packages move down the belt at the Marina Del Rey, California FedEx station December 12, 2011. REUTERS/Fred Prouser

The company said it took an impairment charge of $100 million in May due to the aircraft retirement plan and said it expects an additional expense of $74 million in 2014.

“With the planned acquisition of new aircraft and projected slower economic growth than previously forecast, FedEx Express is lowering maintenance costs by aggressively parking and retiring aircraft,” Chief Executive David Bronczek said.

FedEx last year unveiled a prolonged restructuring plan that includes updating and modernizing its air fleet.

The company also declared a dividend of 15 cents a share, an increase of one cent a share over the previous dividend payment.

Reporting by Nivedita Bhattacharjee in Chicago; Editing by Steve Orlofsky

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