FedEx has announced that its FedEx Express subsidiary has entered into an extension to the express air transportation contract with the United States Postal Service (USPS) originally executed on April 23, 2013. The contract modification extends the agreement through September 29, 2024.
The company expects that the modified contract will generate revenue of approximately $1.5bn per year for FedEx Express. FedEx Express will provide airport-to-airport transportation of USPS Priority Mail Express and Priority Mail within the United States.
David J. Bronczek, president and chief operating officer of FedEx Corporation, said: “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.”