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UPS places repeat order with Boeing for 767 freighters

Express carrier continues to invest heavily in airline

A UPS 767 freighter lifts off with another load of parcels and freight. UPS Airlines will have more than 100 767s in its fleet when Boeing finishes building all the planes on order. (Photo: Jim Allen/FreightrWaves)

UPS will buy eight more 767-300 freighters from Boeing to support domestic and international demand for parcel shipping, driven by e-commerce, and fleet replenishment, the companies announced Monday.

The order comes nine months after Atlanta-based UPS (NYSE: UPS) placed an order for 19 of the Boeing (NYSE: BA) cargo jets and will increase UPS’ 767 fleet to 108 aircraft. 

UPS said the aircraft will help meet demand in high-growth areas like healthcare, small business and international markets.

“This is a very versatile aircraft that we operate across every region of the globe,” said Nando Cesarone, UPS executive vice president and president U.S. “With these aircraft, our fleet will continue to be among the most modern in our industry, meeting our customers’ needs while improving our efficiency, sustainability and reliability.”

Boeing’s 20-year outlook envisions air cargo volumes gaining at a 4.1% compound annual clip. Airbus projects slower growth, but that the express sector will grow 4.9% per year.

UPS will begin taking delivery of the new airplanes in 2025, with an additional 767-300 Boeing converted freighter entering service in late 2023. 

Based on the 767-300 Extended Range passenger jet, the 767 freighter carries up to tons of cargo payload. The medium-size widebody is used by UPS on regional and international routes. 

UPS was the launch customer for the 767 freighter in 1995 and has purchased a total of 108 of the model. The carrier currently operates 238 Boeing freighters including the 747, 757, 767 and MD-11.

At a list price of about $220 million per aircraft, the UPS deal is worth about $1.7 billion. UPS is expected to get a discount for purchasing multiple aircraft.

UPS Airlines and its pilots this month finalized a two-year contract extension.

UPS is guiding expectations for $102 billion in revenue and 13.7% adjusted operating margin for 2022.

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.


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Eric Kulisch

Eric is the Supply Chain and Air Cargo Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals and a Silver Medal from the American Society of Business Publication Editors for government and trade coverage, and news analysis. He was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. He won Environmental Journalist of the Year from the Seahorse Freight Association in 2014 and was the group's 2013 Supply Chain Journalist of the Year. In December 2022, Eric was voted runner up for Air Cargo Journalist by the Seahorse Freight Association. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. He has appeared on Marketplace, ABC News and National Public Radio to talk about logistics issues in the news. Eric is based in Vancouver, Washington. He can be reached for comments and tips at [email protected]