Fedex has retired 15 freighters and 21 related engines earlier than planned in a drive to not only modernise its fleet but moreover improve capacity utilisation, cut costs and lift profits.

The aircraft, engines and related parts to be retired include seven MD11 airframes and 12 related engines; three A300 airframes and three related engines; four A310-300 airframes and three related engines; and one MD10-10 airframe and three related engines.

The move resulted in a non-cash impairment charge of US$246 million recorded in May that will impact on its fourth-quarter results. The company said it has also adjusted the retirement schedule of an additional 23 airframes and 57 engines, resulting in a further impairment charge in May of $30 million, reported Lloyd's Loading List.

Over the last two years, the express delivery firm has been intent on pushing more of its lower-yielding shipments from its own fleet to cheaper subcontractors.

As of February, the fleet totalled 673 aircraft, including 383 jet aircraft.