FedEx orders Boeing freighters for $6.6 billion

(Reuters) - FedEx Express, a unit of package delivery company FedEx Corp (NYSE: FDX), has ordered 24 medium and large freighters from Boeing Co (NYSE: BA), the world's biggest planemaker said on Tuesday, as e-commerce demand boosts air freight business.

The new airplanes, Boeing's 767 and 777 freighters, have a list price of $6.6 billion, said Boeing, which has sold more than 50 widebody freighters so far this year, including the latest order.

Air freight demand is expected to increase 4 percent this year, according to the International Air Transport Association (IATA). Last year was the best for cargo since 2010, with traffic growth more than doubling to 9 percent, three times the growth in capacity.

While trade tensions are rising, the industry is counting on e-commerce continuing to soar, with more people buying products online for quick delivery.

FedEx's order comes nearly four months after rival United Parcel Service Inc (NYSE: UPS) said it had ordered 14 additional Boeing 747-8 cargo jets.

(Reporting by Arunima Banerjee in Bengaluru; Editing by Cynthia Osterman)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Boeing withdraws from Navy jet training system competition
• Circle board member resigns after nearly 13 years of service
• Laser Photonics regains NASDAQ compliance after filing quarterly report