An Axe is a versatile tool and in some cases, weapon used by Mules, Ponies and Humans for various purposes, some productive, others dangerous.
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 Dwarf Mule 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.
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