FedEx encourages pilots to jump ship to AA subsidiary - ShipRx
Blog / FedEx encourages pilots to fly for American Airlines subsidiary
2 minutes read

FedEx encourages pilots to fly for American Airlines subsidiary

What would you think if your employer suddenly started encouraging you and your colleagues to leave the company and take a job somewhere else? You’d probably begin to question just how well your employer is doing, wouldn’t you?

This isn’t an imagined scenario— it’s happening at FedEx right now. In today’s blog post, we’ll find out why FedEx is encouraging its pilots to find work elsewhere and how you can use this to your advantage in parcel rate negotiations.

Is FedEx kicking its pilots to the curb?

In August, the Wall Street Journal reported a surplus of 700 pilots at FedEx, citing declining parcel volume and the combination of Express and Ground units.

As of now, there is no forced downsizing happening at FedEx. Instead, and in response to pilot complaints about only flying the minimum number of contracted hours, the carrier released a statement urging its pilots to switch from flying cargo with FedEx to flying passengers with American Airlines subsidiary PSA Airlines. Pat DiMento, FedEx’s vice president of flight operations and training, claims this new career opportunity may be the answer to “a slowing economy, large customer contract negotiations, and slowing pilot retirements with an already overmanned crew force” now that the carrier is seeing “decreased revenues and volumes similar to 2019 levels.”

What’s in it for the pilots?

The airline offers an expedited interview process for a captain position, a $250,000 signing bonus, years of service credit for Part 121 flying, and a guaranteed flow to American Airlines.

Pat DiMento wrote in the statement, published by aviation blogger @JonNYC on X, “While I understand this is not something that will appeal to every pilot, for those of you who are frustrated with current flight hours, career progression, or have just been on on the fence about available options, you may consider this unique opportunity enough of an incentive to make a move.”

Are your shipments safe with FedEx?

FedEx isn’t alone in facing low demands with increased costs. After averting the Teamsters strike this summer, UPS offered early retirement to eligible pilots. Nearly 200 accepted the offer.

As the carriers look out for the bottom line, who’s looking out for yours? When you choose ShipRx to assist with parcel rate negotiations, we’re with you every step of the way— from reviewing your contract to pinpoint savings opportunities to combining benchmarking data with a detailed analysis of your shipping operations to determine the lowest possible rates you should be paying. Our proven strategy often saves our customers 20-30% on annual shipping costs.

FedEx and UPS will do whatever it takes to stay in business and remain profitable. With lower parcel demand, the power is shifting from the carriers to the customers, and there’s never been a better time to negotiate your parcel contract.

Get in touch with ShipRx today to schedule your free savings analysis. Carriers are changing to reflect the current parcel climate; take action now so you don’t get left behind.


Todd Partner
2 Minute Read

UPS and FedEx surcharges coming to an urban center near you

Attention shippers! If you send parcels to addresses in Boston, Chicago, New York, Los Angeles, or San Francisco, you may be surprised by additional fees on your next bill. UPS and FedEx announced new delivery area surcharges (DAS) for
James Founding Partner
2 Minute Read

UPS to replace FedEx as USPS primary air cargo carrier

Although FedEx broke the news on April 1, the end of their 20-year partnership with the United States Postal Service was no April Fool’s Joke. According to the FedEx press release, after concluding extensive discussions, USPS and FedEx opted
Brittany ShipRx Contributor
2 Minute Read

FedEx exceeds analysts expectations with Q3 earnings report

While most of us are enjoying spring and making plans for Q2, FedEx is living in the future—financially, at least. On March 21, 2024, the carrier released its Q3 2024 earnings, which exceeded analysts’ expectations and sent the price
Todd Partner

Save On Your Parcel Costs Today

Get a full-scale analysis of your business and ShipRX exclusive recommended solutions to increase your profits.

Cost Saving Services

Request Your Free Savings Report.

Fill out the form below, and we’ll call you within 24 hours. In a rush? Call now (844) 774-4779

Pop Up Form

  • This field is for validation purposes and should be left unchanged.