FedEx Corp said shipment volume from Japan is light but is expected to pick up as factories there return to business, Chief Financial Officer Alan Graf said.

Graf, reiterating comments by Chief Executive Fred Smith last week during a quarterly earnings conference call, said traffic to Japan will likely rise for reconstruction and humanitarian relief.

Graf spoke to analysts on Thursday at a JPMorgan aviation, transportation and defense conference that was webcast.

Graf confirmed that FedEx had ordered four Boeing 777s, saying the company pays significantly less than total list price of about $1 billion. FedEx favors the 777 for its fuel efficiency, he said, noting that jet fuel prices have surged 48 percent versus last year.

FedEx, asked about growth plans in Europe, said the company has our own organic plans to develop capacity and does not need to make any acquisitions there.

TNT is too expensive, he said, when asked whether FedEx would consider buying its express division.

(Reporting by Lynn Adler; Editing by Richard Chang)

Fedex Japan Tnt