Reuters FedEx narrowed its fiscal 2024 profit forecast on Thursday, raising the bottom end and lowering the top, as cost cuts take hold and share buybacks help offset less business from its largest customer, the U.S. Postal Service.

Shares of the parcel delivery firm jumped 13 in extended trading after operating margin in its largest unit, Express, rose 2.5 in the February fiscal quarter from 1.2 a year ago.

Its margin was helped by measures including parking aircraft, reducing flight hours and other efforts to fly fewer, fuller planes.

Investors have been pressuring FedEx CEO Raj Subramaniam to improve profitability at airbased Express as it undergoes contract renewal talks with USPS and labor discussions with its pilots.

The positive stock price reaction is nearly strictly a function of the Express margins easily beating expectations as cost cuts take hold in a stillsoft business environment, said Evercore ISI analyst Jonathan Chappell.

Memphisbased FedEx now expects fiscal 2024 earnings in the range of 17.25 to 18.25 per share, compared with its prior forecast of 17 to 18.50 per share.

Adjusted profit for the quarter ended Feb. 29 rose to 966 million, or 3.86 per share, topping analysts39; average estimate by 41 cents per share, according to LSEG data. Share buybacks contributed 9 cents of the beat in the latest quarter.

FedEx said it plans to buy back 500 million worth of its shares in the current quarter, and its board of directors approved a new 5 billion…