Boeing today announced an order from UPS for eight more 767 Freighters. The incremental order will increase UPS’s 767 Freighter fleet to 108 airplanes, enabling the global carrier to further modernize and sustainably grow its fleet.
UPS will begin taking delivery of these new airplanes in 2025, with an additional 767-300 Boeing Converted Freighter (BCF) entering service in late 2023.
This purchase builds on UPS’s order for 19 767 Freighters in December 2021.
The Independent Pilots Association (IPA) and UPS Airlines today announced a tentative agreement on a new two-year contract extension.
The short term agreement provides for contract improvements in compensation and retirement.ย Specific details of the agreement will not be disclosed before the IPA presents the proposed contract to all UPS pilots.
“Over the next month we will present this tentative agreement for a two-year contract extension to our crewmembers with an unqualified recommendation for ratification,” said IPA President Captain Robert Travis.ย “This tentative agreement is unanimously approved and endorsed by the six-pilot IPA Executive Board.”
The contract must be ratified by a majority of UPS’s pilots. The vote by the pilots will be completed on August 3.ย If ratified, the new agreement will extend the IPA’s contract with UPS to September 1, 2025.
The IPA is the collective bargaining unit representing the more than 3,300 professional pilots who fly for United Parcel Service, the world’s largest transportation company. The IPA is headquartered in Louisville, Kentucky.
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 Increaseย 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.
โI want to thank all UPSers for their outstanding efforts throughout the holiday season and for once again delivering industry-leading service to our customers.โ said Carol Tomรฉ, UPS chief executive officer. โThe execution of our strategy is delivering positive financial results and driving strong momentum as we move into 2022.โ
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.
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.
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.
You must be logged in to post a comment.