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MEMPHIS, Tenn., February 23, 2017—FedEx Corp. (NYSE: FDX) today announced that its FedEx Express subsidiary has entered into an extension to the express air transportation contract with the United States Postal Service originally executed on April 23, 2013. The contract modification extends the agreement through September 29, 2024.

The modified contract is expected to generate revenue of approximately $1.5 billion per year for FedEx Express. FedEx Express will provide airport-to-airport transportation of USPS Priority Mail Express and Priority Mail within the United States.

“We are pleased to be able to extend this agreement and to continue the outstanding service that FedEx Express has provided to the USPS for more than 16 years,” said David J. Bronczek, president and chief operating officer of FedEx Corporation. “This contract provides USPS with the operational reliability and flexibility they have come to expect from FedEx.”