FedEx has completed an upgrade of its facilities at Madrid Barajas Airport (MAD), an expansion that comes as the express delivery giant continues to report strong revenue numbers.
Just prior to opening its refurbished MAD facilities, FedEx boosted its 2026 full-year revenue growth forecast from 11% to 12%. The company posted $22.8 billion in third-quarter revenue, up 12% from the 2025 September quarter.
FedEx added 1,550 m2 (12,380 ft.2) of airside warehouse space at MAD and also developed 913 m2 of new space dedicated to technical and administrative offices. The cargo carrier's footprint at the airport now exceeds 4,500 m2.
The expansion “substantially increases operational capacity and streamlines customs procedures, further reinforcing Madrid's strategic role as a primary gateway and global transit hub within the company's European and intercontinental network,” FedEx said.
FedEx views Europe as its largest potential growth market and is placing an increased emphasis on time-sensitive international shipments to and from the region.
“This modernized facility streamlines cross-border flows and shortens transit times,” said María José Palacios, FedEx's senior manager of hubs and gateways for the Iberian Peninsula.
FedEx reported operating income of $1.07 billion for the third quarter, up 10% year over year. Net income for the period decreased 68% versus the 2025 third quarter to $290 million.
The third-quarter net profit drop is attributed to a short-term investment loss related to the company retaining a minority 19.9% stake in FedEx Freight, the unit it spun off into a separate company during the second quarter.
The spinoff was part of FedEx's multiyear reorganization focused on high-value cargo transport, started by CEO Raj Subramaniam in 2022. Subramaniam and other executives did not believe FedEx Freight's less-than-truckload road cargo transport business fit with the reorganized FedEx.
The company's international express delivery segment generated $7.5 billion in revenue in the third quarter, up 17% year over year, while U.S. domestic express delivery accounted for $14.8 billion in revenue, up 10%.
Third-quarter operating expenses rose 12% year over year to $21.8 billion. Fuel costs during the quarter totaled $1.27 billion, up 64% year over year.
FedEx said its third-quarter operating results were “driven by increased package base yields, higher package volumes and continued structural cost reductions from business optimization initiatives. These factors were partially offset by increased purchased transportation rates, higher wage rates and variable compensation expenses, and the financial impact of global trade policy changes.”
FedEx in late October appointed Jamere Jackson as its new CFO. He replaces Claude Russ, who had served as interim CFO since June 1, when John Dietrich stepped down as CFO following the FedEx Freight spinoff. Jackson formerly was CFO of AutoZone.
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