FedEx is anticipating a $120 million loss due to the grounding of its MD-11 fleet in the third quarter of fiscal year 2026.

FedEx Corporation's Q3 fiscal 2026 results showed strong revenue growth and profitability despite facing challenges due to the grounding of its MD-11 aircraft fleet, which impacted adjusted operating income by $120 million. CFO John Dietrich commended the company's teams for their quick network adjustments during peak season. The grounding is expected to continue affecting performance, with an anticipated $55 million headwind in Q4. However, FedEx achieved an 8% revenue increase and raised its full-year EPS guidance, highlighting its resilience and ability to adapt amid operational disruptions.