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                                                                      Exhibit 18


     June 27, 2001

     FedEx Corporation
     942 South Shady Grove Road
     Memphis, Tennessee  38120

     Re: Form 10-K Report for the year ended May 31, 2001

     FedEx Corporation:

     This letter is written to meet the requirements of Regulation S-K calling
     for a letter from a registrant's independent accountants whenever there has
     been a change in accounting principle or practice.

     During 2001, FedEx Corporation (the "Company") changed the actuarial
     valuation measurement date for certain of its pension plans from May 31 to
     February 28. According to management of the Company, the change in
     measurement date was made to conform to the measurement date used for the
     Company's postretirement health care plans and to facilitate the budgeting
     and planning process. Additionally, the Company changed from the full fair
     value method to the calculated value method for determining the market
     related value of certain of its pension plan assets. According to
     management of the Company, the change in the method of determining the
     market related value of certain pension plan assets was made to use a
     method more consistent with the long-term nature of pension accounting.

     A complete coordinated set of financial and reporting standards for
     determining the preferability of accounting principles among acceptable
     alternative principles has not been established by the accounting
     profession. Thus, we cannot make an objective determination of whether the
     changes in accounting described in the preceding paragraph are to
     preferable methods. However, we have reviewed the pertinent factors,
     including those related to financial reporting, in this particular case on
     a subjective basis, and our opinion stated below is based on our
     determination made in this manner.

     We are of the opinion that the Company's changes in methods of accounting
     are to acceptable alternative methods of accounting, which, based upon the
     reasons stated for the changes and our discussions with you, are also
     preferable under the circumstances in this particular case. In arriving at
     this opinion, we have relied on the business judgment and business planning
     of your management.

     Very truly yours,

     /s/ Arthur Andersen LLP