FedEx reported its fiscal Q2 earnings last week and sent a strong signal that its re-structuring efforts associated with previous overcapacity in the air express are bearing results.

Total revenues increased 2.7 percent while overall profits rose by 14 percent. Operating income in the air express segment increased 42 percent despite nearly flat revenues. The express division Q2 results reflect fairly significant impacts from previous multiple quarters of re-structuring-efforts coupled with higher rates and lower operating expenses.

Results from ground operations were somewhat impacted by the shorter holiday surge period this year.  None the less, operating income in ground increased 3 percent coupled with a 10 percent increase in revenues.

The company indicated that it handled 22 million surge shipments on December 16, which was the third consecutive Monday of record volumes. Prior to the current holiday surge, FedEx expected a 22 million shipment peak on December 2nd, which as Cyber Monday.