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NEW YORK - US parcel delivery giant FedEx reported Thursday solid quarterly earnings and unveiled an order for 27 Boeing aircraft as it updates its aging aircraft fleet.

 

Net income leaped 76 percent in the fiscal second quarter ending November 30 from a year ago, to $497 million, the company said.

 

Earnings per share excluding special items were $1.57, beating analysts' average forecast of $1.52.

 

Revenue of $10.59 billion was up 10% from $9.63 billion in the 2010 second quarter.

 

"Our improved performance was largely a result of effective yield management programs and strong demand for FedEx Home Delivery and FedEx SmartPost services," Frederick Smith, FedEx chairman, president and chief executive, said in a statement.

 

"With the healthy growth in online shopping this holiday season, demand is increasing for these residential delivery services."

 

As part of the company's modernization of its aircraft fleet, FedEx said it had signed an agreement with Boeing to purchase 27 new 767-300F aircraft, a deal worth about $4.7 billion at list prices.

 

The first three of the 767s are scheduled to be delivered in fiscal 2014 ending in May and six per year in the fiscal period of 2015-2018, FedEx said.

 

"The 767s were selected as the best choice to begin replacing FedEx Express's MD10 aircraft, some of which are more than 40 years old," said the Memphis, Tennessee-based firm.

 

The 767s will provide similar capacity as the MD10s, but will have improved reliability, a roughly 30 percent increase in fuel efficiency and "a minimum" of a 20 percent reduction in unit operating costs, FedEx said.

 

FedEx also announced it was delaying the delivery of 11 Boeing 777F aircraft "to better balance air network capacity to demand."

 

"FedEx Express took action during the quarter to adjust its network, particularly in Asia, as recent inventory destocking trends have impacted demand for our FedEx Express services," said Alan Graf, FedEx executive vice president and chief financial officer.

 

FedEx shares leaped 5.1 percent to $81.19 in morning trade on the New York Stock Exchange. — Agence France Presse