Part 8/11:
Another strategic move is the "Tri-Color" strategy for its air freight operations, designed to make capacity more flexible and scalable. During tariffs-related volume declines—particularly from Asia—the company was able to selectively reduce capacity from China while increasing profitable capacity to Europe, preserving margins and operational agility.
Bright Future and Valuation
Summarizing these developments, the market responded enthusiastically to FedEx’s earnings, with the stock rallying sharply. Looking ahead, many investors and analysts believe the company’s outlook remains promising. Although cautious due to ongoing macroeconomic uncertainty and tariff risks, FedEx’s execution—sharp cost controls, market share gains, and strategic operational improvements—builds confidence.