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Lightweight Economy Squeezes Cargo Airlines

FedEx and UPS post drops in revenue per package as products grow lighter.

By V | Updated on September 27, 2012

FedEx Corp. and competing cargo airlines are finding their yields squeezed in an economy that Alan Greenspan once observed is putting good things in ever-smaller packages.

Both FedEx and United Parcel Service Inc. have posted drops in revenue per package this year. With clients used to paying by weight, softer demand from a weakening global economy has hampered the carriers’ ability to change the way they set rates.

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