Tag 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 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 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:

UPS exceeds forecasts for the second quarter, international operating profit jumps 17%

UPS (United Parcel Service) (UPS Airlines) (Atlanta and Louisville) today announced second quarter 2015 diluted earnings per share of $1.35, a 12% increase over adjusted results for the same period last year. All three segments improved operating profit and margin, led by International and Supply Chain and Freight performance.

The company continued:

UPS-We Love Logistics logo

Highlights:

  • All Segments Improve Profitability and Expand Margins
  • International Operating Profit Jumps 17%
  • Export Shipments up 5.5% with Strong Intra-Europe Growth
  • Supply Chain and Freight Operating Profit Climbs 18%
  • Revenue Growth Dampened by Changes in Currency and Fuel Prices
  • 2015 EPS Growth at Higher End of 6%-to-12% Guidance Range

Currency exchange rates and lower fuel surcharges reduced total reported revenue growth. Total revenue declined 1.2% from the same quarter last year to $14.1 billion. Pricing initiatives continue to drive base rates higher.

“During the quarter, UPS continued to invest for the future by expanding capacity and launching new capabilities that provide higher value to customers,” said David Abney, UPS chief executive officer. “The strong momentum in our International segment is expected to continue and gives us confidence in achieving the upper end of our guidance range.”

On a reported basis, operating profit increased $1.2 billion, and diluted earnings per share was up $0.86. In the second quarter of 2014, UPS reported diluted earnings per share of $0.49, which included a $665 million after-tax charge for the transfer of certain post-retirement liabilities to defined contribution healthcare plans.

Total company shipments increased 2.1% over the second quarter last year to 1.1 billion packages, led by U.S. Deferred Air products and International Export shipments.
Cash Flow

For the six months ended June 30, UPS generated $3.3 billion in free cash flow. The company paid dividends of $1.3 billion, an increase of 9.0% per share over the prior year. UPS also repurchased 13.5 million shares for approximately $1.4 billion.

U.S. Domestic Package

U.S. Domestic revenue increased $140 million over the second quarter last year to $8.8 billion. Shipment growth was led by Deferred Air products up 15% and UPS SurePost which increased more than 8%. Total daily deliveries grew 1.8% due to a slower pace of B2C (business-to-consumer) growth.

Operating profit was $1.2 billion, up $35 million or 3.0% over prior-year adjusted results. Operating margin expanded to 13.6% as improved pricing and productivity offset higher benefit costs.

On a reported basis, operating profit increased $992 million after the transfer of certain post-retirement liabilities to defined contribution healthcare plans, which occurred in the second quarter of last year.

Continued improvements in base rates were offset by lower fuel surcharges. Revenue per package was flat, as changes in fuel surcharges dropped reported yield by almost 300 basis points.

International Package

Currency-adjusted International revenue was up 1.5% over the same period last year. UPS daily Export shipments increased 5.5%, primarily due to an 8.5% increase in intra-Europe shipments. The strong dollar drove U.S. imports higher, while U.S. exports were down slightly.

International operating profit increased $81 million, or 17% over the adjusted results for the same period in 2014. Network improvements, volume growth and pricing initiatives all contributed to expanded operating margin and increased profitability. The segment experienced growth from middle-market accounts and improved premium product sales.

On a reported basis, operating profit increased $108 million after the transfer of certain post-retirement liabilities to defined contribution healthcare plans in the second quarter of last year.

Underlying base rates were up across all regions, though revenue per package decreased 2.4% on a currency-neutral basis. Lower fuel surcharges reduced reported revenue per package by about 350 basis points.

Supply Chain & Freight

Supply Chain & Freight revenue declined 4.5% to $2.2 billion, due to Forwarding revenue management initiatives, currency and lower fuel surcharges at UPS Freight. Operating profits improved $31 million, or 18% over the adjusted results for the same quarter 2014, driven by gains in Forwarding.

On a reported basis, operating profit increased $113 million after the transfer of certain post-retirement liabilities to defined contribution healthcare plans that occurred in the second quarter of 2014.

UPS Forwarding operating profit and margin expanded as the business unit continued to implement a disciplined pricing strategy across key trade lanes. The unit also benefited from improved market conditions and customer mix. Forwarding tonnage and revenue dropped during the quarter, primarily due to revenue management initiatives and the impact of currency fluctuations.

Distribution revenue increased at a mid-single digit growth rate. Growth in Mail services, Healthcare and Aerospace industries contributed to revenue improvements.

UPS Freight revenue declined 2.5% due to lower fuel surcharges and a drop in tonnage driven by changes in customer mix and slowing market growth. LTL (less-than-truckload) revenue per hundredweight growth remained positive, with a 1.4% gain.

Outlook

“The second quarter results reflect continuing gains in our International business,” said Richard Peretz, UPS chief financial officer. “Even though the U.S. economy appears to be growing at a slower pace, our global portfolio and performance reinforces our expectations to attain the higher-end of the guidance range.”

The company’s guidance for 2015 full-year diluted earnings per share is $5.05 to $5.30, a 6% to 12% increase over adjusted 2014 results.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 767-34AF N302UP (msn 27240) arrives in Anchorage, Alaska.

UPS aircraft slide show: AG Airline Slide Show

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