The report added that the full list of territories maintaining Sunday service would be finalized next month.

The move follows FedEx's plan to take out $3.7 billion in costs that it announced last year by parking planes, closing offices, stopping rural Sunday delivery and furloughing workers in its freight division.

FedEx did not immediately respond to a Reuters request for a comment on the Insider report.

The U.S. delivery giant has been trying to cut costs to offset cooling demand and pivot towards more profitable deliveries.

Shares of FedEx were down 1% in morning trade.

(Reporting by Nathan Gomes in Bengaluru; Editing by Shailesh Kuber)