Why did FedEx's operating expenses decrease in Q4 2024?

FedEx's operating expenses decreased in Q4 2024 due to cost-saving initiatives and strategic shifts in their business segments.

1. Cost Savings from DRIVE Program: FedEx implemented the DRIVE program, which contributed to significant cost savings. This program is aimed at enhancing long-term profitability by streamlining operations and reducing expenses.
2. Decrease in Fuel Surcharges: There was a reduction in fuel surcharges, which are a component of operating expenses. This decrease contributed to the overall reduction in operating expenses.
3. Strategic Segment Performance: FedEx's Federal Express segment showed robust growth with increased volume and improved yields, which positively influenced the overall operating expenses. In contrast, the FedEx Freight segment faced challenges with decreased revenue due to lower shipments and fuel surcharges, which had a negative impact on operating expenses.

In summary, FedEx's operating expenses decreased in Q4 2024 due to a combination of cost-saving measures from the DRIVE program, decrease in fuel surcharges, and strategic segment performance.