Editor’s Note: This article originally appeared on FreightWaves.com.
UPS continues to reduce flight activity in its air network to maximize asset utilization and improve efficiency amid deteriorating shipping volumes.
UPS Downshifts Flight Activity as Volumes Deteriorate
The parcel carrier is concentrating on maximizing planeloads.
Key Takeaways:
- UPS is significantly reducing flight activity in its air cargo network to improve efficiency and maximize asset utilization, driven by deteriorating global shipping volumes and a 22% decline in first-quarter operating profit.
- The cutbacks affect both domestic and international operations, with a notable weakness in Asia exports and a 20% drop in volume on the China-to-U.S. corridor.
- These actions are part of a broader industry trend, as other major carriers like FedEx and DHL Express are also scaling back flight hours and facing declining air cargo demand.
- UPS is also modernizing its fleet by retiring older MD-11 aircraft and replacing them with more fuel-efficient Boeing 767s to further reduce operating costs.
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