FedEx Corp. posted $3 billion in consolidated net profit for fiscal 2017, up 64.7% from the company’s $1.8 billion net profit in fiscal 2016.

FedEx attributed its results to higher base rates, increased volume, continued cost management at FedEx Express and the inclusion of full-year results for Dutch courier company TNT Express, which FedEx acquired in May 2016, six days before the end of its 2016 fiscal year.

The results were partially offset by integration expenses involving TNT Express, combined with restructuring expenses and network expansion costs at FedEx Ground, the company said.

“Investments to modernize our aircraft fleet and expand our FedEx Ground capacity are supporting our strong earnings growth,” FedEx EVP and CFO Alan Graf, Jr. said. “We are very optimistic about fiscal 2018.”

The Memphis-based express cargo company’s fiscal year ended May 31. The company took delivery of 14 new Boeing 767-300 freighters during its 2017 fiscal year.

FedEx’s consolidated revenue for fiscal 2017 totaled $60.3 billion, up 19.8% over $50.4 billion in consolidated fiscal 2016 revenue. Total consolidated operating expenses were $55.3 billion, up 16.9% year-over-year (YOY). The company reported consolidated operating income of $5 billion for fiscal 2017, up 63.7% YOY.

FedEx Express, the company’s airline unit, reported full-year revenue of $27.4 billion, a 3.4% increase over $26.5 billion in fiscal 2016.Total package revenue was $21.8 billion, up 3.4% YOY; total freight revenue was $4.1 billion, up 3.9% YOY. Operating expenses for the segment totaled $24.7 billion, up 3.1% YOY; operating income was $2.7 billion, up 6.3%. The segment’s FY2017 operating margin rose 0.3 point YOY to 9.8%.

TNT Express reported $7.4 billion in full-year revenue, with full-year expenses totaling $7.3 billion, resulting in $84 million in operating income for fiscal 2017 and an operating margin of 1.1%.

Mark Nensel