FedEx Wins AI Data Center Air Freight Business as B2B Drives Q3 Growth

FedEx is capturing new air freight volume from traditionally parcel-centric customers, including a recent win with an AI data center client, President and CEO Raj Subramaniam said on a Q3 earnings call Wednesday. International freight revenue rose 28% year over year in Q3, and average daily freight pounds in the international segment increased 15%, driven by data center and other B2B shippers, said EVP and Chief Customer Officer Brie Carere. B2B accounts for 60% of FedEx revenue and drove most of the company's quarterly revenue growth. Carere said FedEx has onboarded 13 major automotive customers to value-added services since establishing a dedicated vertical last year. Rival UPS is pursuing a similar shift toward premium volume in healthcare, high-tech, manufacturing and automotive, CFO Brian Dykes said on a Tuesday call.