UPS Downshifts Flight Activity as Volumes Deteriorate

The parcel carrier is concentrating on maximizing planeloads.

Friday, April 28, 2023 at 11:38 AM ET

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UPS has nearly 600 owned and leased aircraft in its fleet, including 75 Boeing 757-200 (pictured) freighters. [Credit: Jim Allen/FreightWaves]

Key Takeaways:

UPS is significantly reducing flight activity across its domestic and international air networks to optimize asset utilization and improve efficiency amidst deteriorating shipping volumes.
The company reported a 22% drop in operating profit for the first quarter, driven by lower average daily package volumes, particularly a 20% decline on the China-to-U.S. corridor.
These flight reductions align with a broader industry trend, as other major carriers like FedEx and DHL Express are also scaling back operations due to a general decline in non-express air cargo volumes.

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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.

Eric is the Air Cargo Market Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals from the American Society of Business Publication Editors for government coverage and news analysis, and was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. Eric is based in Portland, Oregon. He can be reached for comments and tips at ekulisch@freightwaves.com