Announcing its results full-year results for fiscal year ended May 31, the express giant said it expected to spend around US$7.2 billion in FY 2022 compared with around $5.9 billion last year.
Meanwhile, FedEx will exercise options to purchase 20 additional B767Fs, 10 for delivery in fiscal year 2024 and 10 for delivery in fiscal year 2025.
The investments will also include 16 new automated facilities and the implementation of nearly 100 expansion projects at its ground division.
'To handle future ground volumes, we are significantly increasing capacity to deliver both, great service and improved financial results,' said FedEx chairman and CEO Fred Smith.
'This summer, we are intently focused on improving network and delivery operations prior to the volume surge in the fall.'
Looking to the air cargo market, FedEx said that trade volumes have surpassed pre-pandemic levels and are on course for the fastest year of growth in over a decade.
It said that global air cargo capacity remained down 10 per cent year on year in April as a result of lower bellyhold capacity.
FedEx expects air cargo capacity to remain constrained at least in the first half year and capacity recovery to be slow and possibly episodic. A full recovery is not anticipated until 2024.
The company also believes that 'favourable' pricing internationally should continue through fiscal year 2022.
Last fiscal year, the company saw revenues increase to $84 billion from $69.2 billion the prior year and operating income was a $5.9 billion against $2.4 billion.
In its fourth quarter, revenues stood at $22.6 billion against $17.4 billion in the prior year and operating income was $1.8 billion compared with $475 million 12 months earlier.
'Fourth quarter operating results increased primarily due to volume growth and disciplined revenue and portfolio management,' the company said.
FedEx Express fourth quarter operating income more than doubled year over year, driven by exceptional growth in international export and US domestic package services.
FedEx Ground reported record earnings for the quarter and revenue growth of 27 per cent. The revenue increase was primarily driven by strong growth in business-to-business shipments and a 14 per cent rise in revenue per package.
FedEx Freight reported record earnings and operating margin of 16.1 per cent for the quarter, as average daily shipments grew 30 per cent and revenue per shipment increased six per cent.