FedEx future profit outlook is projected to be positive despite concerns that lead to a pricing structure change. In January 2015, FedEx will convert to a volume pricing structure, abandoning the traditional pricing based on weight of package. With its new pricing scheme, a light weight, large volume package (think bulk toilet paper) will no longer be less expensive to ship than smaller, heavier boxes. This change will allow FedEx to maximize space on crowded cargo planes and delivery trucks, leading to increased profits for the company in 2015.

FedEx Corporation’s first quarter earnings (FY15) were projected to be $1.96 per share, but results were a better than expected $2.10 per share. The happy results put FedEx on track to reach end of year earnings goal of $8.50 to $9.00 a share. The primary fuel behind this increase in value is FedEx’s revenues exceeding analysts projections by .21 billion dollars. Revenues climbed by 5.99% and increases were noted in all three of FedEx’s segments: ground, freight, and express. Each segment has experienced increased revenues as a result of previously enacted price increases. Ground saw revenues improve by 8%, Freight improved by 4% and Express made the greatest contribution with a stunning revenue increase of 13%.

Efforts to reduce workforce and increase efficiency, which began in 2012, are now paying off. FedEx completed its overhaul of its massive air fleet, which resulted in improved fuel efficiency and faster delivery times. Pricing structure changes aimed to maximize network capacity monetization, combined with increasing access to Asian and other global markets, not to mention superior infrastructure when compared to competitors, puts FedEx on track to meet, if not exceed, projections for 2015 and into 2016.