Category Archives: UPS Airlines

UPS Airlines takes delivery of its last Boeing 747-8F freighter

The last UPS 747 to be built, delivered April 9, 2022

UPS Airlines (Louisville) has take delivery of last Boeing 747-8F freighter.

The pictured N633UP (top) was handed over on April 9, 2022.

The freighter flew from Paine Field in Everett, WA to the Louisville base.

Top Copyright Photo: UPS Airlines (UPS-Worldwide Services) Boeing 747-8F N633UP (msn 65774) PAE (Nick Dean). Image: 957209.

UPS Airlines aircraft slide show:

UPS Airlines aircraft photo gallery:

The final Boeing 747-8F for UPS Airlines is rolled out of the paint shop

UPS Airlines made this announcement:

Our final Boeing Airplanes 747-8F, N633UP, has rolled out of paint.

Our last Queen of the Skies will soon enter service after completing a conformity check verification pending FAA approval.

UPS releases its 4Q and 2021 earnings

UPS Airlines (UPS-Worldwide Services) Boeing 747-8F N625UP (msn 65782) ANC (Michael B. Ing). Image: 956657.

UPS released its financial results:

  • Consolidated Revenues of $27.8B, Up 11.5% from Last Year
  • Consolidated Operating Profit of $3.9B, Up 91.0% from Last Year; Up 37.7% on an Adjusted* Basis
  • Diluted EPS of $3.52; Adjusted Diluted EPS Up 35.0% Over Last Year to $3.59
  • UPS Board of Directors Declares Quarterly Dividend of $1.52, a Per-Share Increase of 49% Over the Prior Year

UPS announced fourth-quarter 2021 consolidated revenue of $27.8 billion, an 11.5% increase over the fourth quarter of 2020. Consolidated operating profit was $3.9 billion, up 91.0% compared to the fourth quarter of 2020, and up 37.7% on an adjusted basis. Diluted earnings per share were $3.52 for the quarter; adjusted diluted earnings per share were 35.0% above the same period in 2020.

For the fourth quarter of 2021, GAAP results include a total charge of $59 million, or $0.07 per diluted share, comprised of a non-cash, after-tax mark-to-market (MTM) pension charge of $14 million and after-tax transformation and other charges of $45 million.

“I want to thank all UPSers for their outstanding efforts throughout the holiday season and for once again delivering industry-leading service to our customers.” said Carol Tomé, UPS chief executive officer. “The execution of our strategy is delivering positive financial results and driving strong momentum as we move into 2022.”

2022 Outlook

The company provides guidance on an adjusted (non-GAAP) basis because it is not possible to predict or provide a reconciliation reflecting the impact of future pension mark-to-market adjustments or other unanticipated events, which would be included in reported (GAAP) results and could be material.

UPS expects to deliver its 2023 consolidated revenue and operating margin targets one year early. For the full year 2022, the company expects consolidated revenue of about $102 billion, an adjusted operating margin of approximately 13.7% and adjusted return on invested capital to be above 30%.

The company is planning capital expenditures to be 5.4% of revenue or approximately $5.5 billion, dividend payments to be around $5.2 billion, subject to Board approval, and share repurchases to be at least $1.0 billion. The effective tax rate is expected to be around 23.0%.

Video:

Top Copyright Photo: UPS Airlines (UPS-Worldwide Services) Boeing 747-8F N625UP (msn 65782) ANC (Michael B. Ing). Image: 956657.

UPS Airlines aircraft slide show:

UPS Airlines aircraft photo gallery:

UPS Airlines celebrates 34 years today

UPS Airlines made this announcement:

It’s our anniversary! Today we’re celebrating 34 years. We want to give a special shout out to all of our UPS Airlines & Worldport employees. Thanks for 34 great years delivering what matters to our customers.

UPS orders an additional 19 Boeing 767-300F freighters

UPS Airlines (UPS-Worldwide Services) Boeing 767-34AF ER N313UP (msn 27764) OSL (Ton Jochems). Image: 956207.

Boeing today announced an order for 19 767 Freighters from UPS highlighting the 767 Freighter’s outstanding operational efficiency and payload capability to serve its customers at a time of robust air cargo demand.

The deal adds to a record-breaking year for Boeing freighter sales, including 80 firm orders for new widebody freighters and more than 80 orders for Boeing Converted Freighters. In 2021 air cargo demand has surged due to an expansion of e-commerce and express cargo markets.

Based on the 767-300ER (Extended Range) passenger jet, the 767 Freighter carries up to 52.4 tons of revenue cargo with intercontinental range, serving as a flexible platform for long-haul, regional and feeder markets. UPS was the launch customer for the 767 Freighter in 1995, and since then has ordered a total of 91 of the aircraft. The carrier currently operates 236 Boeing freighters including the 747, 757, 767 and MD-11.

Top Copyright Photo: UPS Airlines (UPS-Worldwide Services) Boeing 767-34AF ER N313UP (msn 27764) OSL (Ton Jochems). Image: 956207.

UPS Airlines aircraft slide show:

UPS Airlines aircraft photo gallery:

UPS releases its first quarter 2021 earnings

 

UPS Airlines (UPS-Worldwide Services) Boeing 747-8F N626UP (msn 65781) PAE (Nick Dean). Image: 952877.

  • Consolidated Revenue Increased 27%; Growth Across All Segments
  • Consolidated Operating Profit Up 158% to $2.8B, Up 164% on an Adjusted* Basis
  • Diluted EPS of $5.47; Adjusted Diluted EPS Up 141% to $2.77

UPS has announced first-quarter 2021 consolidated revenue of $22.9 billion, a 27% increase over the first quarter of 2020. Consolidated average daily volume increased 14.3% year over year. Consolidated operating profit was $2.8 billion, up 158% compared to the first quarter of 2020, and up 164% on an adjusted basis. Diluted earnings per share were $5.47 for the quarter, 393% above the same period in 2020, and up 141% on an adjusted basis.

For the first-quarter of 2021, GAAP results include a net benefit of $2.4 billion, or $2.70 per diluted share, comprised of an after-tax mark-to-market (MTM) pension benefit of $2.5 billion and after-tax transformation and other charges of $140 million. The MTM benefit was primarily driven by the enactment of the American Rescue Plan Act of 2021 (ARPA). The ARPA, which was signed into law on March 11, 2021, protects certain multi-employer pension plans from becoming insolvent through 2051, thereby eliminating the Company’s liability for potential coordinating benefits related to the Central States Pension Fund. Enactment of the ARPA required the Company to remeasure its UPS IBT Pension plan at current discount rates, which have increased since the previous measurement date. The overall result was a reduction in the pension liability of $6.4 billion.

“I want to thank all UPSers for delivering what matters, including COVID-19 vaccines,” said Carol Tomé, UPS chief executive officer. “During the quarter, we continued to execute our strategy under the better not bigger framework, which enabled us to win the best opportunities in the market and drove record financial results.”

U.S. Domestic Segment

   

1Q 2021

Adjusted

1Q 2021

 

1Q 2020

Adjusted 

1Q 2020

Revenue $14,010 M   $11,456 M  
Operating profit $1,359 M $1,463 M $364 M $401 M
  • Revenue increased 22.3%, led by growth from small and medium-sized businesses.
  • Revenue per piece increased 10.2%, driven by Ground products.
  • Operating margin was 9.7%; adjusted operating margin was 10.4%.

 

International Segment

   

1Q 2021

Adjusted

1Q 2021

 

1Q 2020

Adjusted

1Q 2020

Revenue $4,607 M   $3,383 M  
Operating profit $1,085 M $1,091 M $551 M $558 M
  • Average daily volume grew 23.1%, with export growth from all regions.
  • Revenue increased 36.2%, led by Asia and Europe.
  • Operating margin was 23.6%; adjusted operating margin was 23.7%.

 

Supply Chain and Freight Segment

   

1Q 2021

Adjusted

1Q 2021

 

1Q 2020

Adjusted

1Q 2020

Revenue $4,291 M   $3,196 M  
Operating profit $321 M $395 M $157 M $158 M
  • Revenue increased 34.3%, driven by strong demand in nearly all businesses.
  • Operating margin was 7.5%; adjusted operating margin was 9.2%.

* “Adjusted” amounts are non-GAAP financial measures. See the appendix to this release for a discussion of non-GAAP financial measures, including a reconciliation to the most closely correlated GAAP measure.

Outlook

Given continued economic uncertainty, the Company is not providing 2021 revenue or diluted earnings per share guidance; however, it is re-affirming its full-year capital allocation plans. UPS has scheduled its 2021 Investor and Analyst Day for June 9, when it will share further financial details.

Reaffirms Full-Year 2021 Capital Allocation Plans

  • The sale of UPS Freight is expected to close in the second quarter.
  • Capital expenditures are planned to be about $4.0 billion.
  • Long-term debt repayments, including $1.5 billion repaid in the first quarter of 2021, will total $2.5 billion.
  • Effective tax rate for the remainder of the year is expected to be around 23.5%.
  • The Company has no plans to repurchase shares.

Top Copyright Photo: UPS Airlines (UPS-Worldwide Services) Boeing 747-8F N626UP (msn 65781) PAE (Nick Dean). Image: 952877.

UP Airlines aircraft slide show:

 

UPS to purchase up to 150 electric vertical takeoff and landing aircraft

UPS through its UPS Flight Forward plans to purchase electric vertical takeoff and landing aircraft. UPS made this announcement:

Through its UPS Flight Forward subsidiary the company plans to purchase electric vertical takeoff and landing (eVTOL) aircraft from Beta Technologies (BETA) as part of its innovation-driven strategy to identify new ways to help small businesses with sustainable solutions.

With the capability to take off and land directly on UPS property, eVTOL aircraft are perfect for moving smaller loads that would otherwise fly to and from airports on small feeder aircraft or take even longer by ground.

UPS Flight Forward is scheduled to take delivery of its first ten BETA eVTOL aircraft beginning in 2024, with the option to purchase up to 150. The vehicle has a 1,400-pound cargo capacity, a range of 250 miles and zero operating emissions.

UPS has reserved BETA’s recharging station for safe and rapid charging of the aircraft in under one hour to facilitate faster cargo loading and unloading. The charging station also offers the aircraft’s batteries a second life. After the batteries’ first lifecycle in the aircraft is over, they can be fitted to the charging station to recharge the aircraft’s onboard batteries as well as UPS’s fleet of electric ground vehicles.

UPS has more than 12,000 alternative fuel and advanced technology vehicles deployed worldwide, and is committed to purchase up to 10,000 electric vehicles from Arrival.

Check out these photos of the aircraft in action.

 

Note: Images are artist renderings and don’t show the actual aircraft in use.

Video:

First UPS’ Airbus A300 facelift completed

Airbus has handed over the first completed cockpit upgrade for UPS Airlines’ fleet of 52 A300-600 Freighters. The aircraft (MSN 868), revitalized with state-of-the-art Honeywell cockpit avionics, was redelivered to UPS on 3rd February at Airbus’ U.S. facility in Mobile Alabama following the certification by EASA on 22nd December 2020 and by the FAA on 5th January 2021. This is the first time that such a complex upgrade has been performed on the A300. UPS expects to have the entire fleet converted by peak season of 2022.

A valuable ‘facelift’

The enhancements transform the A300-600 cockpit to confer the maximum operational flexibility and capabilities – bringing it close to current generation of aircraft. Key to achieving this is the advanced new integrated avionics system supplied by Honeywell, which is based on its Primus Epic suite.

The four large 10×8 inch LCD main displays and the new colour multi-function control & display unit (MCDU), which replace several analogue instruments, are the most immediately visible changes to grace the A300-600’s upgraded instrument panel. Other new ‘under the hood’ items include: a new flight management system (FMS); support for a worldwide navigation database; a new multi-mode receiver (MMR) incorporating the latest GPS-based satellite navigation systems; a digital datalink for communications with air traffic control (ATC); a central maintenance computer; and a digital weather radar system with turbulence detection and windshear prediction – among numerous other capabilities.

 

Additional capabilities

The upgrade also provided the opportunity to integrate several enhanced safety and situational awareness functions. These include the latest Enhanced Ground Proximity Warning System (EGPWS), fully integrated traffic collision avoidance (TCAS) functions, a vertical situation display and a new GPS-based instrument approach capability which is a valuable aid for pilots when flying to airports that are not equipped with traditional radio-based ILS equipment.

Commenting on-site at the re-delivery milestone, Allen Fenske, Honeywell’s Senior Platform Director in the Airbus Customer Business Team highlighted some of the benefits which their new integrated systems will bring to UPS’ operation: “Our modern FMS with FANS capability will help give UPS aircraft priority with ATC controllers. And with the integrated MMR – which includes GPS and SBAS capabilities – UPS can fly into either ILS or non-ILS airports, and it also helps them to land in inclement weather.

 

UPS A300 600F Cockpit Upgrade

Higher maintainability

From an architectural standpoint, the upgrade brings additional simplicity such that if a particular function needs to be upgraded or changed, then in most cases this only requires a circuit board to be quickly swapped-out from a central cabinet – rather than (as previously) having to remove all the other associated hardware. Overall, the upgrade will enable UPS to reliably operate and maintain the type until around 2035, and for these PW4000-powered A300-600Fs to seamlessly take advantage of current and future airspace requirements and evolving ATM infrastructures.

Fenske adds: “We have also modernised the maintenance system enabling UPS to download data from the aircraft wirelessly. This facilitates quick turnaround times.  The new worldwide database can be updated in 10 minutes, compared to the tedious original system requiring manual load of several floppy discs of regional-only databases.”

 

Still young…and perfect for the job!

Ed Walton, Managing Director of Engineering at UPS Airlines said on the day of the handover: “These airplanes that we bought brand new from Airbus are still our babies. They are still young in terms of flight cycles, and therefore have a lot of useful life ahead of them. The A300 design has the perfect capacity for the U.S. domestic ‘express’ market; it’s a great airplane in terms of how it fits into our network. In terms of the overall strategy, the Airbus cockpit upgrade with the Honeywell avionics really allows us to continue using an asset and unlocking the most efficient operational capability.”

Walton notes: “It’s a beautiful airframe for us and it’s still a very efficient freighter. And for the pilots it greatly improves their situational awareness; while for the aircraft maintenance crew we have now transformed this airplane into the modern realm with its central maintenance computer which allows them much quicker troubleshooting.”

AIRBUS UPS A300 Cockpit Upgrade

Airbus: Service provider and integrator

The retrofit program commenced with Airbus being chosen to design the new integrated cockpit architecture for UPS’ A300s, and to manage the overall development project including flight-testing and certification. Airbus would also supply the service bulletins and kits to UPS, comprising both the new Honeywell avionics modules as well as Airbus’ own aircraft-specific wiring, cockpit panels and other structural elements. Also worth noting is that being the Type Certificate holder, Airbus provides the warranty and updated documentation with the upgrade.

Olivier Criou, VP Head of the A300/A310 Program, and Chief Engineer, commented in Mobile: “I am proud that after 50 years since the launch of the A300 program, the aircraft undergoes a fantastic refresh and reaches state-of-the-art functionality for UPS’ operation. Nevertheless, 50 years in aviation still makes us a relatively young company, and that pioneering spirit still inhabits the A300/A310 team and Airbus as a whole.”

Successful tripartite collaboration ensuring truly efficient long term usage

“It’s been a three and a half year journey,” recalls Honeywell’s Fenske. “I feel that with the Honeywell, Airbus and UPS teams we were very tight knit and collaborative. And with this delivery I can just imagine how excited UPS’ pilots are going to be. They have been flying in the original cockpit, and now they have our modern Primus Epic system with larger colour LCD displays, providing more information better integrated with room to adapt to the continually changing environment, (mandates and future capabilities).”

Airbus’ Criou concludes: “As a company, Airbus has always been committed to providing long-term support to our customers and this is true for our customer UPS and their A300-600F fleet. So we are honored to have collaborated with them and with our supplier Honeywell, as well as what we have been able to achieve with the teams in Airbus. By answering UPS’ request for a new cockpit, even 13 years after the end of production for this program, we are still there as their long-term Services Support partner to ensure their aircraft’s future operations.”

The UPS facility at Louisville at night: