Tag Archives: Boeing 747-8F

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:

 

UPS adds the Boeing 747-8F freighter

The new Boeing 747-8F Intercontinental Freighter

UPS Airlines is adding the newer and larger Boeing 747-8F Intercontinental Freighter to its Boeing 747-400F freighter fleet.

The first to be delivered was N605UP which was handed over on September 29, 2017.

The pictured N607UP completed its first flight on October 6, 2017. The new freighter became airborne in about 3,500 feet at Paine Field near Everett, WA.

In October 2016 Boeing announced an order for 14 747-8 Freighters for UPS. The agreement also includes an option to purchase an additional 14 of the cargo airplanes.

The 747-8s will enable UPS to begin a cascade of aircraft route reassignments that will add significant air capacity to the company’s busiest lanes, thereby optimizing global air network capacity well beyond the impact of adding new cargo jets.

The 14 aircraft are to be delivered between 2017 and 2020.

In addition, the 747-8 offers training and operating efficiencies to UPS. Pilots of the company’s existing 747-400 fleet will enjoy a common equipment rating, allowing them to fly both aircraft types. Further, UPS will realize greater economies of scale in maintenance and ground handling by operating the -8 aircraft.

The 747-8 freighters carry 34 shipping containers on its main deck and 14 in its lower compartments.  The -8 has a cargo capacity of 307,600 pounds, or approximately 30,000 packages and a range of 4,340 nautical miles.

N605UP arrived at the Louisville (SDF) base and is currently operating crew proving flights around SDF. It will enter revenue service later this month.

The 747 fleet usually operate from SDF to Anchorage, Alaska for refueling, and then on to its hubs in Asia.

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

UPS Airlines:

AirBridgeCargo takes delivery of two Boeing 747-8 Freighters

AirBridgeCargo Airlines-ABC Boeing 747-8HVF VQ-BLQ (msn 37581) FRA (Felix Gottwald). Image: 929994.

Boeing delivered two 747-8 Freighters to AirBridgeCargo Airlines (ABC), part of Volga-Dnepr Group, and one of the leading international scheduled air cargo carriers.

The airplanes are the first to be delivered as part a memorandum of understanding, signed between Boeing and Volga-Dnepr Group at the Paris Air Show in June 2015. The deal calls for more 747-8 Freighters to continue to help ABC provide some of the best cargo carrying service in the world. The agreement also adds the Antonov An-124-100 aircraft to the long-term logistics support for Boeing and its partners.

 

The planes will be deployed on the expanding network under winter schedule 2015/2016, between Asia and the United States. With these two deliveries, ABC’s fleet now consists of eight 747-8 Freighters, five 747-400 Extended Range Freighters, and two 747-400 Freighters.

The 747-8 Freighter provides cargo operators the lowest operating costs and best economics of any large freighter airplane while providing enhanced environmental performance. It offers 16 percent more revenue cargo volume than the 747-400, while keeping its iconic nose door.

Copyright Photo: Felix Gottwald/AirlinersGallery.com. Boeing 747-8HVF VQ-BLQ (msn 37581) arrives in Frankfurt.

AirBridgeCargo aircraft slide show: AG Airline Slide Show

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Cargolux celebrates 45 years of flying with a “You name it, we fly it” logo jet on newly-delivered Boeing 747-8R7F LX-VCM

Cargolux 747-800F LX-VCM (15-You name it)(Ldg) LUX (Cargolux)(LRW)

Cargolux Airlines International (Luxembourg) on September 28 took delivery of brand new Boeing 747-8R7F LX-VCM (msn 61169). The new delivery was flown to Luxembourg (above) and is in service between Luxembourg and Los Angeles via Prestwick.

The new Jumbo freighter is painted in a whimsical “You name it, we fly it” special livery created by Belgian cartoonist Philippe Cruyt. The logo jet is helping Cargolux celebrate 45 years of flying. The logo jet displays some of the odd things the airline has flown in its history.

The airline issued this statement and photos yesterday:

Cargolux 2015 logo

Cargolux Airlines, Europe’s largest all-cargo airline, celebrates its 45th anniversary with a special aircraft livery, created by Belgian cartoonist Philippe Cruyt, that was applied to its 13th 747-8 freighter delivered. The aircraft, LX-VCM, named ‘City of Redange-sur-Attert’, was handed over at Boeing’s Seattle plant on September 28 and arrived in Luxembourg on September 29 with a full load of cargo.

Cargolux LX-VCM 1 (Cargolux)(LR)

As an undisputed leader in air cargo, Cargolux offers an extensive product range, covering everything from every-day cargo to shipments that require detailed attention, special treatment and expert handling.

Cargolux LX-VCM 2 (Cargolux)(LR)

Backed by 45 years of experience, the highly specialized Cargolux teams can cater to the most demanding requirements customers may have.

Cargolux LX-VCM 3 (Cargolux)(LR)

This ability is aptly portrayed in the anniversary livery on LX‑VCM that depicts in a humorous way the many facets of air freight shipments, routinely handled by Cargolux every day.

Cargolux LX-VCM 4 (Cargolux)(LR)

The decal on Cargolux’s new freighter is the biggest decal that Boeing ever applied to an aircraft, it consists of 460 individual parts.

Cargolux LX-VCM 5 (Cargolux)(LR)

Phillippe Cruyt was born in Brussels, Belgium, in 1962. He has already illustrated a range of successful educational books on air freight and environmental topics, published by Cargolux in the early 2000s, as well as advertising and safety campaigns, calendars and posters for the airline.

Cargolux LX-VCM 6 (Cargolux)(LR)

In addition, he has illustrated a range of books as well as published his cartoons at various exhibitions throughout Europe.

Cargolux LX-VCM 7 (Cargolux)(LR)

Currently, Mr. Cruyt divides his professional time and energy between cartoon illustrations for children’s and educational books or designing communication messages with a touch of humor. When he is not drawing, Mr. Cruyt plays clarinet and tenor sax in his jazz group, The Creole Shakers Trio.

Cargolux LX-VCM 8 (Cargolux)(LR)

Cargolux LX-VCM 9 (Cargolux)(LR)

Cargolux LX-VCM 10 (Cargolux)(LR)

Cargolux LX-VCM 11 (Cargolux)(LR)

History

Over the last 45 years, Cargolux has grown to become Europe’s largest all-cargo airline with 828,658 ton of cargo flown in 2014 and a fleet of 25 747 freighters.

On March 4, 1970, Luxair, Loftleiðir, Salén and some private interests founded Cargolux and started operations from the newly established home base at Luxembourg airport with a handful of Canadair CL-44 freighters. The young carrier’s first flight on 10 March 1970 was routed Luxembourg – Stockholm – New York and carried a cargo of strawberries and iceberg lettuce.

The airline was created to operate all-cargo ad hoc and sub-charter flights and the first years of operation proved that there was a need for the type of service that Cargolux was offering to its customers.

Copyright Photo: Christian Volpati/AirlinersGallery.com. Douglas DC-8-63 (CF) LX-ACV (msn 45989) is seen at Paris (CDG).

The CL‑44s soon gave way to bigger DC-8 freighters (above) and, in later years, Cargolux introduced the wide-body Boeing 747 freighter into its fleet, amidst much skepticism in Luxembourg and within the industry. However, the success of the operation eventually proved critics wrong. In later years, Cargolux became the first operator and launch customer of the 747-400F and the 747-8F. With more than 85 offices in over 50 countries, Cargolux today flies to over 70 destinations worldwide and employs over 1,700 people.

Selected Milestones

1970: Cargolux Airlines International is founded by Luxair, Loftleiðir Icelandic, the Salén Shipping Group and private Luxembourg interests.

1974: The maintenance division of Loftleiðir Icelandic is integrated into Cargolux, whose staff increased from 80 to 180 over night.

1978: The final CL-44 is phased out. Cargolux now operates an all-jet fleet.

1979: Boeing delivers Cargolux’s first Boeing 747-200F, the second one arrives a year later.

1983: Cargolux’s CHAMP (Cargo Handling And Management Planning) computer system is introduced.

1984: The last DC-8 freighter is sold, while a third 747-200F is added to the fleet in 1986.

1988: Cargolux ranks among the 15 largest cargo carriers in the world, measured in freight tonne kilometers flown.

1990: Cargolux celebrates its 20th anniversary with an order for three new Boeing 747-400 freighters.

1993: With the delivery of the first two Boeing 747-400 freighters, Cargolux becomes the first airline in the world to operate this state-of-the-art aircraft.

1995: Cargolux celebrates its 25th anniversary. The fleet of modern 747-400 freighters is steadily expanded over the coming years; the 16th and last unit is handed over in 2008.

2005: Cargolux and Boeing announce the development of a new, advanced version of the 747 freighter, later to become the 747-8 series. Cargolux is a launch customer for this new 747 type with an initial order for 10 aircraft. The company later orders five more 747-8Fs.

2009: The Cargolux Maintenance Division moves into its new maintenance hangar that offers modern facilities and space for two 747/A380-sized aircraft. Cargolux enters into a strategic partnership in Italy to create Cargolux Italia for intercontinental all-cargo services from Milan’s Malpensa airport.

2011: Qatar Airways takes a 35% equity interest in Cargolux, but decided in November 2012 to sell its stake. The State of Luxembourg acquires these shares on an interim basis. Some six years after signing the initial order, Cargolux is taking delivery of its first two Boeing 747‑8 freighters on 19 and 21 September.

2014: Cargolux achieves a number of crucial goals, including the conclusion of a commercial cooperation agreement with HNCA, who acquire 35% of the Cargolux shares and the successful introduction of services to and from Cargolux’s new hub in China, Zhengzhou.

2015: Cargolux celebrates its 45th anniversary. The airline operates the largest fleet in its history and routinely records one of the highest daily aircraft utilization rates in the industry. Cargolux now operates seven weekly frequencies between Luxembourg and Zhengzhou and introduces its first dedicated transpacific service between Zhengzhou and Chicago.

The Cargolux Spirit

With the acceptance of 747-8F LX-VCM, Cargolux operates one of the youngest and most efficient freighter fleets in the industry.

“I’m proud to see this aircraft with a very special paint scheme join out fleet,” says Dirk Reich, Cargolux President & CEO. “The 747-8 freighter perfectly suits our worldwide network and its nose-loading and cargo-carrying abilities help us to maintain our leading position in the airfreight industry. Philippe Cruyt’s exceptional livery is a fitting addition to our 13th 747-8F and underlines not only the expertise and experience that Cargolux has gained in handling a wide variety of normal and special freight, but also celebrates the long and colorful history of our company. This aircraft is an ambassador for the passion and the spirit of Cargolux.”

All photos by Cargolux (except below).

Cargolux aircraft slide show: AG Airline Slide Show

Bottom Copyright Photo: Joe G. Walker. LX-VCM arrives at Seattle/Tacoma to take a full load of cargo to Luxembourg.

Cargolux 747-800F LX-VCM (15-You name it)(Apr) SEA (JGW)(LRW)

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