* FedEx ( FDX ) shares rise 9% after hours on upbeat profit

forecast

* Expects full-year revenue growth of 6.0% to 6.5% YoY

* FedEx ( FDX ) sees no fuel shortages related to the Middle East

conflict

By Lisa Baertlein and Abhinav Parmar

March 19 (Reuters) - FedEx ( FDX ), known for flying

overnight packages around the world, has not seen jet fuel

supplies affected by the war in Iran, which could affect demand

for a small part of its global business, Chief Financial Officer

John Dietrich told Reuters on Thursday.

Those comments came shortly after FedEx ( FDX ) raised its full-year

profit forecast as it reported third-quarter profit and revenue

above Wall Street estimates, helped by a surge in deliveries

during the all-important holiday quarter.

Attacks on oil facilities in the Gulf have pushed crude

prices up over $100 a barrel and threatened jet fuel supplies,

rattling the aviation market, while missile and drone threats

have snarled airline traffic to normally busy Middle Eastern

transport hubs.

However, the company said its outlook assumes no additional

geopolitical disruptions, but the fallout from the U.S.-Israeli

war on Iran, which has pushed air freight rates higher and

forced carriers to reroute flights, could weigh on

fourth-quarter performance.

FedEx ( FDX ), like most other transportation providers, adds fuel

surcharges that shift volatile fuel costs to its customers. If

those costs get too high, customers could reduce shipping.

"We're a large operator, and have great relationships, so no

shortages," Dietrich said, addressing the concerns.

Memphis-based FedEx ( FDX ), which earlier this month overtook UPS

in market value for the first time, saw its shares rise 9% in

after-hours trading. The company was valued at about $82.23

billion as of Wednesday's close.

FedEx ( FDX ) now expects adjusted profit for its fiscal year ending

May 31 to be between $19.30 and $20.10 per share. Analysts, on

average, expect FedEx ( FDX ) to post full-year profit of $18.69 per

share, according to data compiled by LSEG.

The company in December forecast annual profit of $17.80 to

$19.00 per share.

About 8% of FedEx's ( FDX ) international export volume flows

through hubs in the region, Stifel analysts said, highlighting

its exposure to ongoing disruption.

FedEx ( FDX ) operating results in its Express unit improved in the

third quarter, helped by stronger U.S. and international package

pricing, higher domestic volumes and ongoing cost cuts.

The third-quarter "results were lifted by much higher

yields, but this time much stronger U.S. ground volume also

helped the top line," Evercore ISI analyst Jonathan Chappell

said.

"The cost savings from the network reorganization also

continue to help expand margins, and all 3 added up to a very

surprising beat," he added.

The company said that gains were partly offset by higher

wages and incentive pay, rising transportation costs, the impact

of global trade policy changes, and the grounding of MD-11

aircraft.

Adjusted earnings for its crucial winter holiday quarter rose to

$5.25 per share, beating analysts' estimates of $4.14 per share,

even as it absorbed millions in unexpected costs related to

truck and plane replacements for its MD-11 fleet, which was

grounded after a deadly UPS crash in November 2025.

FedEx ( FDX ) had 28 Boeing MD-11 cargo jets in operation when

the Federal Aviation Administration grounded the planes after

the crash that killed 15 people, including three pilots on

board.

FedEx ( FDX ) is working with regulators to return its MD-11 fleet

to service by the end of May, Dietrich said.

The company also said that it now expects its full-year

revenue to be up in the range of 6.0% to 6.5% year-over-year,

compared with its previous forecast of growth between 5% and 6%.

FedEx ( FDX ) is in a multi-year restructuring that includes

slashing billions of dollars in costs, combining its distinct

Ground and Express delivery options, automating some operations

and spinning off its Freight trucking business on June 1.

FedEx ( FDX ) posted revenue for the quarter ended February 28 of

$24 billion, above analysts' estimates of $23.43 billion.