FedEx Suspends Money-Back Guarantee Amid MD-11 Fleet Inspections

FedEx has suspended its Money-Back Guarantee (MBG) for all shippers effective December 1, 2025, citing reduced air fleet capacity due to MD-11 aircraft safety inspections and the need to maintain network flexibility during peak season. The last time both UPS and FedEx broadly suspended service guarantees was in 2020 at the onset of COVID-19.

What to know:

• Ground remains excluded from service guarantees entirely, while International and Air service guarantees are suspended.
• Since 2021, most suspensions were limited to Import/Export services.
• On FedEx’s Q2 FY26 earnings call, the company noted it is working with Boeing and the Federal Aviation Administration to return affected aircraft to service.
• The MD-11 grounding impacted Q2 operating income by ~$25M, with up to ~$175M in incremental costs expected in Q3 from third-party air cargo adjustments and contingencies.
• UPS has extended delivery commitments during the disruption; there is no definitive end date yet, though MD-11 inspections are targeted for completion by spring 2026.

Learn More:

• UPS: Service Guarantee
• FDX: U.S. Money-Back Guarantee Policy
  • FedEx expects $175M impact from MD-11 fleet grounding
  • FedEx anticipates MD-11 aircraft return in spring period