EXHIBIT 12.1

FEDERAL EXPRESS CORPORATION

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(UNAUDITED)

(IN MILLIONS, EXCEPT RATIOS)

	Three Months Ended August 31,					Year Ended May 31,
	2004			2003		2004		2003		2002		2001		2000
Earnings:
Income before income taxes	$		273	$	25	$	541	$	689	$	703	$	786	$	843
Add back:
Interest expense, net of capitalized interest	20			1		64		57		74		75		82
Amortization of debt issuance costs	—			—		—		—		1		1		1
Portion of rent expense representative of interest factor	146			144		583		599		594		563		575
Earnings as adjusted	$	439		$	170	$	1,188	$	1,345	$	1,372	$	1,425	$	1,501
Fixed Charges:
Interest expense, net of capitalized interest	$	20		$	1	$	64	$	57	$	74	$	75	$	82
Capitalized interest	2			2		7		13		23		23		30
Amortization of debt issuance costs	—			—		—		—		1		1		1
Portion of rent expense representative of interest factor	146			144		583		599		594		563		575
	$	168		$	147	$	654	$	669	$	692	$	662	$	688
Ratio of Earnings to Fixed Charges	2.6			1.1		1.8		2.0		2.0		2.2		2.2