FedEx said it has decided to permanently ground 18 Airbus A310-200 freighters and six MD-10Fs.

“The majority of these aircraft are currently parked and not in revenue service,” it said in a statement. As a result of the retirements, the company incurred a noncash impairment charge of $134 million in its fiscal fourth quarter ended May 31.

“The decision to permanently retire these aircraft will better align the US domestic air network capacity of FedEx Express to match current and anticipated shipment volumes,” FedEx said. The Memphis-based cargo operator also retired five Boeing 727-200Fs in the quarter ended May 31. It plans to retire 21 additional 727Fs, which it noted will be “fully depreciated,” in the fiscal year started June 1.

As of Feb. 29, FedEx operated a fleet of 688 total aircraft, including 397 jets.

Additionally, the company’s board of directors has declared a quarterly cash dividend of 14 cents per share of FedEx common stock, payable July 2 to stockholders of record at the close of business June 18.

SOURCE: ATW