Axes can be used as tools, and are specially good for chopping down trees to make wood. Applejack managed to cut down a few trees in order to get wood to help build a new room for Rarity. Likewise, Axes can be used as weaponry in certain situations. Lorne of Lore, a chaotic-good DwarfMule was said to have used the Axe of Aragones in his adventures with his party, but this was a fictional account. Axes were what presumably chopped down all the trees in the Old Forest.