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It's still in use, primarily in freight, some charter, and some private ownership. Donald Trump has a real nice one unless he sold it recently. I regularly flew the last one ever made which was used in airline passenger service up until last year when my airline closed.
It was a great airplane (one of the safest on record), and really fun to fly. Noisy, and not fuel efficient, but fast. We often had to slow down for more modern airliners we were overtaking. One of the few negatives is that the 727-200 is tough to land well consistently (the stretched fuselage threw off the landing gear geometry).
FEDEX still flies at least one 727-200. It is in use every day MEM - YYC.
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