FedEx Corp cut its full-year forecast after a worse-than-expected quarterly profit as customers shift from air express to slower but cheaper modes of international shipping.

The No. 2 US package-delivery company said it would step-up restructuring efforts, cut capacity in Asia and realign its global aircraft network to cut costs and boost earnings.

Shares of the company, which has cut its full-year earnings forecast twice in the last six months, fell more than 5 percent in morning trading on the New York Stock Exchange yesterday. The company’s express unit, its biggest source of revenue, has been hit as more cost-conscious international customers opt to use container ships instead of overnight shipment by air. Operating income in the express unit fell 66 percent in the third-quarter ended February 28th. – (Reuters)