The world's largest cargo airline, FedEx Corporation, said on Thursday that quarterly profits would be more than doubled on augmented shipments in Asia and Europe, with strong Asian export volumes higher than compensating for flat domestic demand.

Reports said that exports from Asia led FedEx a jump of 18 percent in volume from its international priority business. A weak American economy was reflected when the average daily domestic package rose by just 1 percent.

According to Thomson Reuters, FedEx raised its 2010 earnings forecast to a range of $3.60 to $3.80 a share from a previous outlook of $3.45 to $3.75. Analysts on average expected $3.64.

"An improving global economy drove solid financial performance in the quarter", Fred Smith, the company's Chief Executive, said during a conference call with analysts. "In fact, the recovery is broadening".

Reports said that FedEx had replaced programs for employee compensation which were earlier cut due to recession, regardless of the dampening outcome they will have on income in the fourth quarter and into 2011.