Category Archives: UPS Airlines

UPS Air Cargo Teamsters ratify contract

The Teamsters issued this statement:

UPS Airlines aircraft mechanics and related employees at UPS Air Cargo have voted to ratify their newest contract with the company. The contract, which becomes amendable on November 1, 2023, makes UPS Air Cargo mechanics the highest-paid air cargo mechanics in the country by a wide margin.

Some of the improvements in the contract include an immediate 17.72 percent pay increase, raises each year resulting in a 32.61 percent increase in pay from current rates by the end of the contract and the protection of an unparalleled health care package with no premiums.

 

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UPS Airlines receives a special gift from Boeing

UPS Airlines on social media made this announcement:

During delivery of our latest Boeing 747-8F (above), Boeing presented us with this amazing gift (below) – a cutout from a retired Boeing 747 fuselage, with pictures of each UPS Airlines aircraft type, delivered new from Boeing over the last 30 years. Wow! Thank you.

All photos by UPS.

Video: UPS air-to-air aircraft video shoot

A new video from UPS:

UPS planes get their moment in front of the camera.

With help from production company 3 Delta Fox and funding from Boeing, UPSers used a 16-hour work day to make some movie magic with our aircraft. First, the video crew went up in a Learjet and UPS pilots took their seats in a Boeing 767. They cruised around downtown Los Angeles and up the California coast line, including the Pacific Ocean. Eventually, they worked their way to San Bernardino, California, where the video crew switched from the Learjet to a helicopter to capture ground shots.

The crew repeated this for the Boeing 757 and the MD-11. Thanks to the clear skies, they were able to capture sunrise, sunset and the afternoon California glow. This kind of shoot takes months of planning, meetings and safety briefings to make sure the entire crew is safe and prepared.

The BrownTales crew went behind the scenes to see what it takes to get these beauty shots. Enjoy!

UPS and International Brotherhood Of Teamsters reach handshake agreement for new National Master Agreement

UPS Airlines (UPS-Worldwide Services) Boeing 747-8F N609UP (msn 64254) PAE (Nick Dean). Image: 941249.

UPS issued this statement:

Months of collective bargaining have culminated in a tentative agreement for UPS and the International Brotherhood of Teamsters. The five-year agreement, which is subject to ratification, covers Teamsters-represented UPS employees in small package roles.

UPS’s goal has been to reward the company’s employees for their contributions to its success while enabling the business to remain flexible to meet its customers’ needs – each of these goals have been met in the new agreement. UPS is well-positioned to grow and meet the needs of its customers.

Negotiations continue on a number of supplemental agreements that cover local work rules as well as the separate agreement that covers about 11,000 Teamsters-represented employees in the UPS Freight® network.

The new agreements will go into effect August 1, 2018, once they are ratified by employees.

Copyright Photo: UPS Airlines (UPS-Worldwide Services) Boeing 747-8F N609UP (msn 64254) PAE (Nick Dean). Image: 941249.

UPS aircraft slide show:

UPS reports on its first quarter financial performance

N609UP

Atlanta, GA

  • International Revenue and Operating Profit Climb 15%
  • Average Daily Exports grew 12%, Led by Europe and U.S. Trade Lanes
  • Supply Chain & Freight Operating Profit up 14% on 16% Revenue Growth
  • U.S. Domestic Revenue Rises 7.2% on 4.6% Volume Growth
  • Weather Conditions Muted First Quarter U.S. Domestic Results  
  • Cash from Operations of $4.1B Resulted in Free Cash Flow* of $2.6B
  • Reaffirms Full-Year 2018 Adjusted EPS Guidance

UPS has announced that first quarter 2018 earnings per share rose 17% to $1.55, led by double-digit operating profit growth in both International and Supply Chain and Freight segments.

“Top-line growth in our business was strong across all business segments, reflecting the power of UPS’s global solutions and continued favorable economic conditions,” said UPS Chairman and CEO David Abney. “When combined with our transformation initiatives, these favorable trends position UPS for strong returns going forward.”

 

Consolidated Results

 

1Q 2018

 

1Q 2017

 

 

% Change

Revenue

$17,113 M

$15,510 M

10%

Net income

$1,345 M

$1,166 M

15%

Diluted earnings per share

$1.55

$1.33

17%

For the total company in 1Q 2018:

  • Total revenue increased 10% to $17.1 billion, on strong demand for UPS solutions.
  • Average yield increased by 4.3%, led by International and U.S. Deferred Air products.
  • UPS rewarded shareowners by increasing dividends per share by nearly 10% over the prior year, and distributing $840 million during the quarter.
  • To support investment strategies the company made capital expenditures of $1.5 billion.
  • The lower effective tax rate reflects a more competitive U.S. tax structure, some discrete tax items and includes the impact of share-based compensation.
  • First quarter results include the adoption of new accounting standards for pension and revenue recognition.  Prior-period results were also recast to reflect these changes.

U.S. Domestic Segment

The U.S. Domestic segment experienced strong demand as customers increasingly chose UPS solutions.  Both unexpected and planned items weighed on operating profit for the segment during the first quarter.

 

 

1Q 2018

 

1Q 2017

Revenue

$10,227 M

$9,536 M

Operating profit

$756 M

$950 M

For the U.S. Domestic segment in 1Q 2018:

  • Revenue increased to $10.2 billion, up 7.2% over 1Q 2017.  Revenue improved across all products, signaling the strong market demand for UPS solutions.
  • Revenue per piece increased 2.6% as higher base-rate pricing and fuel surcharges offset headwinds from customer and product mix.
  • Operating profit includes headwinds from severe winter weather of $85 million, Saturday deployment, network projects and higher pension expenses.

International Segment

“The execution of our diversified global strategies and our investments produced double-digit growth in revenue and profit,” said Abney.  “Each of our International regions is contributing to our financial gains, and we expect this strong momentum to continue.”

 

 

 

1Q 2018

 

1Q 2017

Revenue

$3,533 M

$3,074 M

Operating profit

$594 M

$518 M

For the International segment in 1Q 2018:

  • International revenue increased 15% despite two fewer operating days in many countries. Currency-neutral revenue increased 8.7%.
  • Export, Domestic and Cargo product groups all achieved double-digit revenue growth.
  • Export shipments per day grew an average 12% as premium products continue to outpace non-premium.
  • Export volume growth in Europe and the U.S. continued to be strong for the quarter.
  • Operating profit was $594 million, up 15% on higher Export shipments and expanded product yields.  Currency-neutral operating profit increased 10%.

Supply Chain and Freight Segment

The Supply Chain and Freight segment produced another quarter of strong financial results.  Revenue and operating profit grew by double digits due to successful revenue-quality initiatives, opportunistic growth strategies and structural cost reductions.

 

 

1Q 2018

 

1Q 2017

Revenue

$3,353 M

$2,900 M

Operating profit

$170 M

$149 M

For the Supply Chain and Freight segment in 1Q 2018:

  • Revenue increased to $3.4 billion, up 16% over 1Q 2017.  The business units focused on high quality, middle-market customers.
  • The Forwarding business led all units with 27% revenue growth, as revenue management initiatives and stable market conditions drove top-line gains.
  • UPS Freight revenue increased 9.9% on solid LTL (less-than-truckload) pricing and tonnage growth.
  • Operating profit was $170 million, up 14% from the same quarter in 2017.

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.

“Our focused business strategies are producing strong results in both the International and Supply Chain segments,” said Richard Peretz, UPS’s chief financial officer.  “The benefits from our investments, new multi-year transformation efficiencies and stronger pricing position us well for shareowner value creation.”

  • UPS expects 2018 adjusted diluted earnings per share to be in a range of $7.03 to $7.37.
  • The company projects free cash flow of $4.5 billion to $5.0 billion in 2018.
  • The effective tax rate should be in a range of 23% to 24% for the remainder of the year.
  • Capital expenditures in 2018 are planned between $6.5 billion to $7.0 billion.

Copyright Photo: UPS Airlines (UPS-Worldwide Services) Boeing 747-8F N609UP (msn 64254) PAE (Nick Dean). Image: 941250.

UPS Airlines aircraft slide show:

UPS launches a nonstop Louisville – Dubai flight, its longest route

UPS Airlines (UPS-Worldwide Services) Boeing 747-8F N607UP (msn 64265) PAE (Nick Dean). Image: 939436.

UPS Airlines is launching a daily nonstop flight from its Worldport® global air hub in Louisville, KY., to Dubai, UAE, improving time-in-transit from North and South America to key destinations in the Middle East by a full business day. The flight, operated with one of UPS’s new Boeing 747-8F freighters, is part of the build out of UPS’s smart global logistics network and takes place as the company plans for its role as official logistics provider for Expo 2020 Dubai.

At approximately 7,700 miles (12,400 km), the route is the longest regularly-scheduled flight UPS has ever operated, and is made possible by the new 747-8s, which offer greater payload over long range. The new flight is currently operating on a weekly basis and will become a daily flight on February 27, operating Tuesday through Saturday. The new flight is part of plans to expand UPS’s presence in Dubai, the headquarters of UPS’s Indian Subcontinent Middle East & Africa (ISMEA) region, by establishing capacity, technology and staff capabilities to serve customers shipping to and through Dubai in the buildup to Expo 2020 and beyond. UPS has been operating in the region since 1989.

The Louisville-Dubai flight leg is part of an “around-the-world” flight route that begins and ends at UPS Worldport in Louisville, KY.  For the volume from North and South America that passes through Worldport, there is a full day time-in-transit improvement to Dubai. After arriving in Dubai, new package and freight volume is loaded onboard the aircraft before it departs for Shenzhen, China, home to UPS’ largest facility in Asia. U.S.-bound volume is then loaded in Shenzhen and the aircraft returns to Worldport via Anchorage, AK. With the addition of this new flight, the volume capacity on UPS’s current Cologne to Dubai flight increases to better serve the needs of customers connecting Europe to the Indian Subcontinent, Middle East and Africa.

Copyright Photo: UPS Airlines (UPS-Worldwide Services) Boeing 747-8F N607UP (msn 64265) PAE (Nick Dean). Image: 939436.

UPS aircraft slide show:

UPS keeps the Boeing 747 alive with a new order

The new Boeing 747-8F Intercontinental Freighter

UPS has made this announcement:

UPS on February 1, 2018 announced it has ordered 14 Boeing 747-8F cargo jets and four new Boeing 767-300F aircraft to provide additional capacity in response to accelerating demand for the company’s air services. All of the new aircraft will be added to the existing fleet and no existing aircraft are being replaced.

The aircraft will be delivered on an expedited schedule, building on the company’s 2016 order of 14 Boeing 747-8 freighters. All 32 of the jets will be delivered by the end of 2022, adding more than 9 million pounds of cargo capacity.  UPS’s global airline network includes more than 500 owned and leased aircraft. UPS received three new 747-8 freighters in 2017.

In addition to growing customer demand for express services, recent US tax reform legislation is enabling UPS to utilize tax savings to significantly increase capital investments and to make them earlier than previously planned.

“As we celebrate the 30th anniversary of UPS Airlines today, we are seeing unprecedented demand for our air products,” said UPS Airlines President Brendan Canavan. “The new freighters will allow us to continue upsizing aircraft on routes and will create a cascading effect that will boost capacity on regional routes around the world.”

The 747-8 freighter carries 46 shipping containers, 34 on its main deck and 12 in its lower compartments.  The -8 has a cargo capacity of 307,600 pounds, or approximately 30,000 packages and a range of 4,200 nautical miles. The new -8 aircraft line has a strong industry safety, reliability, and environmental record.   The Boeing 767 freighter has cargo capacity of 132,200 pounds and capacity for 31 air containers, 24 on the main deck and 7 in its lower compartments.  It has a range of approximately 3,000 nautical miles.  UPS currently operates 59 Boeing 767 aircraft.

Copyright Photo: UPS Airlines (UPS-Worldwide Services) Boeing 747-8F N607UP (msn 64265) PAE (Nick Dean). Image: 939437.

UPS Airlines aircraft slide show: