US-based courier business, FedEx, continues to operate in an uncertain environment, especially in markets heavily impacted by Covid-19.
On 27 March 0220, the US President, Donald Trump, signed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
The CARES Act is intended to provide economic relief to US citizens and businesses in response to the Covid-19 pandemic and is reported to include provisions for relief from air cargo and aviation fuel excise taxes from 28 March 28 2020 through to 31 December 2020.
For illustrative purposes, FedEx estimates that the air cargo and aviation fuel excise tax holiday provisions of the CARES Act, if in effect during FedEx’s full fiscal year ended 31 May 2019, would have benefitted FedEx’s consolidated operating income by approximately $250 million USD.
The CARES Act provides financial relief options and security for FedEx if needed as it continues to support the US economy and its recovery.
“We remain focused on mobilising our global network to help the communities where we live and work and to continue serving our customers around the world,” FedEx said in a statement.
In other news, FedEX recently announced its CFO succession plan.