FedEx has announced its FedEx Express subsidiary has entered into an extension to the express air transportation contract with the United States Postal Service originally agreed on 23 April, 2013.
The contract modification extends the agreement through to 29 September, 2024.
FedEx says the modified contract is expected to generate revenue of around $1.5 billion a year for FedEx Express. FedEx Express will provide airport-to-airport transportation of USPS Priority Mail Express and Priority Mail within the US
FedEx president and chief operating officer, David J. Bronczek says: “We are pleased to be able to extend this agreement and to continue the outstanding service that FedEx Express has provided to the USPS for more than 16 years.
“This contract provides USPS with the operational reliability and flexibility they have come to expect from FedEx.”