FedEx

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said Monday that it plans to spend $2.6 billion to replace its narrow-body fleet of

Boeing

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727-200 planes with 757-200 aircraft.

FedEx said that compared with the 727 planes, the 757 has 20% greater payload capacity and a 25% lower operating cost per pound. The 757 planes are also quieter and more fuel-efficient, the delivery giant said.

FedEx Express expects to bring the nearly 90 new aircraft into service between 2008 and 2016. FedEx's total capital spending forecast for fiscal 2007 remains at $3 billion.

The company also said it named Steven Loranger, chairman of

ITT Corp.

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, to its board. Shareholders at FedEx's annual meeting, held Monday, also re-elected the company's other 13 director nominees.

FedEx shares recently were down 64 cents to $105.39.