FedEx reports drop in quarterly earnings on lower demand for priority services

FedEx and other transportation firms expanded operations during the pandemic-fueled online shipping boom. After demand normalized, package delivery firms have been laying off workers, shuttering offices and sorting facilities, and parking trucks and planes to shelter margins from excess overhead costs. However, ongoing cost cuts failed to offset the drag from weak demand for the lucrative priority services in the United States and one fewer operating day in the quarter, FedEx said.