Exhibit 99.1

FOR IMMEDIATE RELEASE

FedEx Corp. Reports Third Quarter Earnings

MEMPHIS, Tenn., March 17, 2011 ... FedEx Corp. (NYSE: FDX) today reported earnings of $0.73 per diluted share for the third quarter ended February 28. Excluding costs related to the previously announced combination of the company’s FedEx Freight and FedEx National LTL operations, third quarter earnings were $0.81 per diluted share, compared to $0.76 per diluted share a year ago.

“Continued growth in the global economy is driving solid revenue gains in our transportation businesses,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. “We expect strong demand for our services to boost our financial performance in our fourth quarter.”

Third Quarter Results

FedEx Corp. reported the following consolidated results for the third quarter:

	•		Revenue of $9.66 billion, up 11% from $8.70 billion the previous year
	•		Operating income of $393 million, down 6% from $416 million last year
	•		Operating margin of 4.1%, down from 4.8% the previous year
	•		Net income of $231 million, down 3% from $239 million a year ago

While yields grew in all transportation segments, unusually severe winter storms during the quarter disrupted operations, decreased shipping volume and increased costs, impacting year-over-year results by approximately $0.12 per diluted share. Earnings were also reduced by costs related to the January 30, 2011 combination of FedEx Freight and FedEx National LTL operations, including lease termination costs and severance expenses. The reinstatement of merit salary increases, increases in pension and medical costs, higher aircraft maintenance expenses and the full reinstatement of 401(k) company-matching contributions also impacted earnings.

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Outlook

FedEx projects earnings to be $1.66 to $1.83 per diluted share in the fourth quarter and an adjusted $4.83 to $5.00 per diluted share for fiscal 2011. The company’s forecast assumes the current market outlook for fuel prices and continued moderate growth in the global economy. Earnings could be affected by the impact of the ongoing political turmoil in the Middle East and North Africa on fuel prices and the economy. Also, the near-term impact of the earthquake and tsunami in Japan on operational costs, shipping patterns and the global economy is currently uncertain. The annual guidance excludes FedEx Freight combination costs and a second quarter legal reserve. Including costs from the FedEx Freight combination and the legal reserve, earnings are expected to be $4.49 to $4.66 per diluted share for fiscal 2011. The company reported earnings of $1.33 per diluted share in last year’s fourth quarter. The capital spending forecast for fiscal 2011 remains $3.5 billion.

“Successful yield management initiatives helped drive significant revenue growth across our transportation segments in the third quarter, although results were dampened by severe winter storms and higher-than-expected fuel costs,” said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. “Our FedEx Ground segment had record third quarter results. In addition, we are very pleased with the execution of the new FedEx Freight strategy, which is expected to drive FedEx Freight’s return to profitability in the fourth quarter. More broadly, we expect continued positive yield trends to improve revenues and margins in the fourth quarter and in fiscal 2012.”

FedEx Express Segment

For the third quarter, the FedEx Express segment reported:

	•		Revenue of $6.05 billion, up 11% from last year’s $5.44 billion
	•		Operating income of $178 million, down 33% from $265 million a year ago
	•		Operating margin of 2.9%, down from 4.9% the previous year

FedEx International Priority^® (IP) average daily package volume increased 5%, led by exports from Asia and Europe. IP revenue per package grew 7% due to improved weight per package, rate increases and higher fuel surcharges. IP freight pounds increased 21% with revenue per pound up 3%. U.S. domestic average daily package volume increased 2% and revenue per package grew 5% due to higher fuel surcharges, rate increases and improved weight per package.

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Operating income and margin were negatively impacted by increased aircraft maintenance, the reinstatement of certain employee compensation programs, higher employee benefits expenses and the negative impact of severe winter weather, which more than offset strong revenue growth.

During the quarter FedEx completed the acquisition of the logistics, distribution and express businesses of AFL Pvt. Ltd. and its affiliate, Unifreight India Pvt. Ltd. This acquisition provides FedEx more robust domestic transportation and added capabilities in India. The acquisition had no material impact on segment financial results for the quarter.

FedEx Ground Segment

For the third quarter, the FedEx Ground segment reported:

	•		Revenue of $2.18 billion, up 14% from last year’s $1.91 billion
	•		Operating income of $325 million, up 26% from $258 million a year ago
	•		Operating margin of 14.9%, up from 13.5% the previous year

FedEx Ground average daily package volume grew 6% in the third quarter driven by increases in the business-to-business market and FedEx Home Delivery. Yield increased 5% primarily due to rate increases and higher fuel surcharges. FedEx SmartPost average daily volume increased 17% due to growth in e-commerce, gains in market share and the introduction of new service offerings. FedEx SmartPost yield increased 7% primarily due to lower postage costs resulting from increased deliveries to U.S. Postal Service final destination facilities and increased fuel surcharges.

Operating income and margin increased primarily due to higher package yield and volume. Current year results were also favorably impacted by one additional operating day.

FedEx Freight Segment

For the third quarter, the FedEx Freight segment reported:

	•		Revenue of $1.12 billion, up 8% from last year’s $1.04 billion
	•		Operating loss of $110 million, compared with an operating loss of $107 million a year ago
	•		Operating margin of (9.8%), compared with (10.3%) the previous year

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Less-than-truckload (LTL) yield increased 11% primarily due to yield management initiatives. LTL average daily shipments decreased 6% as a result of the yield management initiatives and the severe winter weather.

On January 30, 2011, FedEx Freight and FedEx National LTL combined operations, launching a new unified LTL freight network that offers customers the choice of two levels of service—FedEx Freight^® Priority and FedEx Freight^® Economy—from a single company. As a result of this combination, the segment incurred one-time costs of $43 million during the quarter and $130 million fiscal year-to-date due primarily to lease termination costs and severance expenses.

The operating loss in the quarter included the costs associated with the combination of the FedEx Freight and FedEx National LTL operations. Severe winter weather also significantly impacted results. The segment benefited from one additional operating day during the quarter.

Corporate Overview

FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $38 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its more than 290,000 team members to remain “absolutely, positively” focused on safety, the highest ethical and professional standards and the needs of their customers and communities. For more information, visit news.fedex.com.

Additional information and operating data are contained in the company’s annual report, Form 10-K, Form 10-Qs and third quarter fiscal 2011 Statistical Book. These materials, as well as a Webcast of the earnings release conference call to be held at 8:30 a.m. EDT on March 17 are available on the company’s Web site at www.fedex.com/us/investorrelations. A replay of the conference call Webcast will be posted on our Web site following the call.

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Certain statements in this press release may be considered forward-looking statements, such as statements relating to management’s views with respect to future events and financial performance. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions in the global markets in which we operate, legal challenges or changes related to FedEx Ground’s owner-operators, new U.S. domestic or international government regulation, the impact from any terrorist activities or international conflicts, our ability to effectively operate, integrate and leverage acquired businesses, changes in fuel prices and currency exchange rates, our ability to match capacity to shifting volume levels and other factors which can be found in FedEx Corp.’s and its subsidiaries’ press releases and filings with the SEC.

Media Contact: Jess Bunn 901-818-7463
Investor Contact: Mickey Foster 901-818-7468
Home Page: fedex.com

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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES

The company believes that meaningful analysis of our financial performance requires an understanding of the factors underlying that performance and our judgments about the likelihood that particular factors will repeat. Excluding a reserve associated with a legal matter in the second quarter and the costs of the combination of FedEx Freight and FedEx National LTL operations from our third quarter earnings and our full-year earnings guidance, net of applicable incentive compensation impacts, will allow more accurate comparisons to prior periods of our third quarter operating performance and our expected operating performance for fiscal 2011. As required by SEC rules, the tables below present a reconciliation of our presented non-GAAP measures to the most directly comparable GAAP measures.

Fiscal 2011 Third Quarter Earnings

		Q3 Diluted
		Earnings Per Share
Non-GAAP Measure		$	0.81
FedEx Freight Combination Costs			(0.08	)
GAAP Measure		$	0.73

Fiscal 2011 Full-Year Earnings Guidance

		FY 2011 Diluted
		EPS Guidance
Non-GAAP Measure		$	4.83 to $5.00
FedEx Freight Combination Costs			(0.27	)
ATA Legal Reserve			(0.07	)
GAAP Measure		$	4.49 to $4.66

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Third Quarter Fiscal 2011
(In millions, except earnings per share and FTEs)
(Unaudited)

		Three Months Ended												Nine Months Ended
		February 28												February 28
		2011				2010				%				2011				2010				%
Revenue:
FedEx Express segment		$	6,049			$	5,440				11	%		$	17,953			$	15,678				15	%
FedEx Ground segment			2,184				1,910				14	%			6,222				5,477				14	%
FedEx Freight segment			1,123				1,040				8	%			3,602				3,090				17	%
FedEx Services segment			397				406				(2	%)			1,246				1,322				(6	%)
Other & eliminations			(90	)			(95	)			5	%			(271	)			(261	)			(4	%)
Total Revenue			9,663				8,701				11	%			28,752				25,306				14	%
Operating Expenses:
Salaries and employee benefits			3,828				3,549				8	%			11,410				10,350				10	%
Purchased transportation			1,446				1,220				19	%			4,163				3,429				21	%
Rentals and landing fees			621				593				5	%			1,850				1,764				5	%
Depreciation and amortization			493				488				1	%			1,474				1,470				0	%
Fuel			1,049				810				30	%			2,874				2,220				29	%
Maintenance and repairs			480				404				19	%			1,470				1,215				21	%
Impairment and other charges			21				—			NM					88				—			NM
Other			1,332				1,221				9	%			3,933				3,556				11	%
Total Operating Expenses			9,270				8,285				12	%			27,262				24,004				14	%
Operating Income (Loss):
FedEx Express segment			178				265				(33	%)			799				714				12	%
FedEx Ground segment			325				258				26	%			908				705				29	%
FedEx Freight segment			(110	)			(107	)			(3	%)			(217	)			(117	)			(85	%)
Total Operating Income			393				416				(6	%)			1,490				1,302				14	%
Other Income (Expense):
Interest, net			(24	)			(19	)			26	%			(65	)			(52	)			25	%
Other, net			(9	)			(16	)			(44	%)			(25	)			(28	)			(11	%)
Total Other Income (Expense)			(33	)			(35	)			(6	%)			(90	)			(80	)			13	%
Pretax Income			360				381				(6	%)			1,400				1,222				15	%
Provision for Income Taxes			129				142				(9	%)			506				457				11	%
Net Income		$	231			$	239				(3	%)		$	894			$	765				17	%
Diluted Earnings Per Share		$	0.73			$	0.76				(4	%)		$	2.82			$	2.43				16	%
Weighted Average Diluted Common and Common Equivalent Shares			317				315				1	%			316				314				1	%
Capital Expenditures		$	643			$	432				49	%		$	2,703			$	1,981				36	%
Average Full-Time Equivalents (000s)			259				250				4	%			255				244				5	%

FEDEX CORP. CONDENSED CONSOLIDATED BALANCE SHEETS

Third Quarter Fiscal 2011
(In millions)

		Feb. 28, 2011
		(Unaudited)				May 31, 2010
ASSETS
Current Assets
Cash and cash equivalents		$	1,359			$	1,952
Receivables, less allowances			4,478				4,163
Spare parts, supplies and fuel, less allowances			413				389
Deferred income taxes			540				529
Prepaid expenses and other			448				251
Total current assets			7,238				7,284
Property and Equipment, at Cost			33,078				31,302
Less accumulated depreciation and amortization			17,750				16,917
Net property and equipment			15,328				14,385
Other Long-Term Assets
Goodwill			2,321				2,200
Other assets			1,315				1,033
Total other long-term assets			3,636				3,233
		$	26,202			$	24,902
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
Current Liabilities
Current portion of long-term debt		$	18			$	262
Accrued salaries and employee benefits			1,143				1,146
Accounts payable			1,590				1,522
Accrued expenses			1,823				1,715
Total current liabilities			4,574				4,645
Long-Term Debt, Less Current Portion			1,667				1,668
Other Long-Term Liabilities
Deferred income taxes			1,328				891
Pension, postretirement healthcare and other benefit obligations			1,598				1,705
Self-insurance accruals			976				960
Deferred lease obligations			769				804
Deferred gains, principally related to aircraft transactions			252				267
Other liabilities			158				151
Total other long-term liabilities			5,081				4,778
Commitments and Contingencies
Common Stockholders’ Investment
Common stock, $0.10 par value, 800 million shares authorized			31				31
Additional paid-in capital			2,408				2,261
Retained earnings			14,709				13,966
Accumulated other comprehensive loss			(2,256	)			(2,440	)
Treasury stock, at cost			(12	)			(7	)
Total common stockholders’ investment			14,880				13,811
		$	26,202			$	24,902

STATEMENTS OF CASH FLOWS

Third Quarter Fiscal 2011
(In millions)
(Unaudited)

		Nine Months Ended
		February 28
		2011				2010
Operating Activities:
Net income		$	894			$	765
Noncash charges:
Depreciation and amortization			1,474				1,470
Other, net			662				363
Changes in operating assets and liabilities, net			(573	)			(690	)
Cash provided by operating activities			2,457				1,908
Investing Activities:
Capital expenditures			(2,703	)			(1,981	)
Business acquisitions, net of cash acquired			(96	)			—
Proceeds from asset dispositions and other			15				31
Cash used in investing activities			(2,784	)			(1,950	)
Financing Activities:
Principal payments on debt			(262	)			(632	)
Dividends paid			(113	)			(103	)
Other, net			75				29
Cash used in financing activities			(300	)			(706	)
Effect of exchange rate changes on cash			34				5
Net decrease in cash and cash equivalents			(593	)			(743	)
Cash and cash equivalents at beginning of period			1,952				2,292
Cash and cash equivalents at end of period		$	1,359			$	1,549

FEDEX EXPRESS SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS

Third Quarter Fiscal 2011
(Dollars in millions)
(Unaudited)

		Three Months Ended												Nine Months Ended
		February 28												February 28
		2011				2010				%				2011				2010				%
FINANCIAL HIGHLIGHTS
Revenue		$	6,049			$	5,440				11	%		$	17,953			$	15,678				15	%
Operating Expenses:
Salaries and employee benefits			2,321				2,136				9	%			6,832				6,215				10	%
Purchased transportation			386				292				32	%			1,143				830				38	%
Rentals and landing fees			424				397				7	%			1,254				1,178				6	%
Depreciation and amortization			267				254				5	%			787				757				4	%
Fuel			898				694				29	%			2,454				1,903				29	%
Maintenance and repairs			330				261				26	%			1,002				789				27	%
Intercompany charges			498				497				0	%			1,523				1,436				6	%
Other1			747				644				16	%			2,159				1,856				16	%
Total Operating Expenses			5,871				5,175				13	%			17,154				14,964				15	%
Operating Income		$	178			$	265				(33	%)		$	799			$	714				12	%
Operating Margin			2.9	%			4.9	%		(2.0 pts)					4.5	%			4.6	%		(0.1 pts)
OPERATING STATISTICS
Operating Weekdays			62				62				—				190				190				—
AVG DAILY VOLUME / POUNDS
Average Daily Package Volume (000s):
U.S. Overnight Box			1,218				1,190				2	%			1,194				1,157				3	%
U.S. Overnight Envelope			631				601				5	%			627				608				3	%
U.S. Deferred			952				949				0	%			887				876				1	%
Total U.S. Domestic Package			2,801				2,740				2	%			2,708				2,641				3	%
International Priority			558				530				5	%			569				511				11	%
International Domestic			337				317				6	%			338				315				7	%
Total Average Daily Packages			3,696				3,587				3	%			3,615				3,467				4	%
Average Daily Freight Pounds (000s):
U.S.			8,000				7,906				1	%			7,447				7,217				3	%
International Priority			3,131				2,577				21	%			3,158				2,427				30	%
International Airfreight			1,262				1,184				7	%			1,248				1,230				1	%
Total Avg Daily Freight Pounds			12,393				11,667				6	%			11,853				10,874				9	%
YIELD
Revenue Per Package:
U.S. Overnight Box		$	20.05			$	19.16				5	%		$	19.81			$	18.73				6	%
U.S. Overnight Envelope			10.87				10.70				2	%			10.68				10.41				3	%
U.S. Deferred			12.60				11.77				7	%			12.29				11.53				7	%
Total U.S. Domestic Package			15.45				14.74				5	%			15.23				14.43				6	%
International Priority			57.07				53.23				7	%			55.06				52.59				5	%
International Domestic			7.54				7.22				4	%			7.33				7.12				3	%
Composite Package Yield		$	21.01			$	19.76				6	%		$	20.77			$	19.39				7	%
Revenue Per Freight Pound:
U.S.		$	1.14			$	1.07				7	%		$	1.14			$	1.07				7	%
International Priority			2.12				2.06				3	%			2.09				1.97				6	%
International Airfreight			0.88				0.84				5	%			0.88				0.79				11	%
Composite Freight Yield		$	1.36			$	1.26				8	%		$	1.37			$	1.24				10	%
Average Full-Time Equivalents (000s)			136				130				5	%			133				127				5	%

FEDEX GROUND SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS

Third Quarter Fiscal 2011
(Dollars in millions)
(Unaudited)

		Three Months Ended												Nine Months Ended
		February 28												February 28
		2011				2010				%				2011				2010				%
FINANCIAL HIGHLIGHTS
Revenue		$	2,184			$	1,910				14	%		$	6,222			$	5,477				14	%
Operating Expenses:
Salaries and employee benefits			329				289				14	%			954				859				11	%
Purchased transportation			911				771				18	%			2,538				2,197				16	%
Rentals			68				63				8	%			197				184				7	%
Depreciation and amortization			84				83				1	%			249				251				(1	%)
Fuel			5				3				67	%			9				6				50	%
Maintenance and repairs			40				41				(2	%)			126				119				6	%
Intercompany charges			221				207				7	%			669				587				14	%
Other			201				195				3	%			572				569				1	%
Total Operating Expenses			1,859				1,652				13	%			5,314				4,772				11	%
Operating Income		$	325			$	258				26	%		$	908			$	705				29	%
Operating Margin			14.9	%			13.5	%		1.4 pts					14.6	%			12.9	%		1.7 pts
OPERATING STATISTICS
Operating Weekdays			63				62				2	%			191				190				1	%
Average Daily Package Volume (000s)
FedEx Ground			3,882				3,674				6	%			3,751				3,526				6	%
FedEx SmartPost			1,736				1,489				17	%			1,433				1,248				15	%
Yield (Revenue Per Package)
FedEx Ground		$	8.16			$	7.75				5	%		$	8.01			$	7.63				5	%
FedEx SmartPost		$	1.70			$	1.59				7	%		$	1.70			$	1.53				11	%

FEDEX FREIGHT SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS

Third Quarter Fiscal 2011
(Dollars in millions)
(Unaudited)

		Three Months Ended												Nine Months Ended
		February 28												February 28
		2011				2010				%				2011				2010				%
FINANCIAL HIGHLIGHTS
Revenue		$	1,123			$	1,040				8	%		$	3,602			$	3,090				17	%
Operating Expenses:
Salaries and employee benefits			562				532				6	%			1,746				1,552				13	%
Purchased transportation			178				191				(7	%)			567				477				19	%
Rentals			29				29				—				94				85				11	%
Depreciation and amortization			48				49				(2	%)			158				150				5	%
Fuel			145				112				29	%			409				310				32	%
Maintenance and repairs			44				36				22	%			135				105				29	%
Intercompany charges			106				99				7	%			323				249				30	%
Impairment and other charges1			21				—			NM					88				—			NM
Other			100				99				1	%			299				279				7	%
Total Operating Expenses			1,233				1,147				7	%			3,819				3,207				19	%
Operating Loss		$	(110	)		$	(107	)			(3	%)		$	(217	)		$	(117	)			(85	%)
Operating Margin			(9.8	%)			(10.3	%)		0.5 pts					(6.0	%)			(3.8	%)		(2.2 pts)
OPERATING STATISTICS
LTL Operating Weekdays			62				61				2	%			189				188				1	%
LTL Shipments Per Day (000s)			78.3				83.4				(6	%)			86.6				79.1				9	%
Weight Per LTL Shipment (lbs)			1,151				1,133				2	%			1,133				1,124				1	%
LTL Revenue/CWT		$	18.66			$	16.82				11	%		$	18.04			$	17.24				5	%