UPS confirmed in its Q4 earnings report that it has retired its entire MD-11 aircraft fleet, which once accounted for about 9% of its air cargo capacity. The move follows a deadly crash involving the aircraft model in November and a subsequent fleet grounding.
To replace the retired planes, UPS plans to introduce 18 Boeing 767 aircraft between 2026 and early 2027. CEO Carol Tomé said this aligns with the company’s strategy to build a more efficient, flexible global network. UPS also incurred a $137 million non-cash charge from writing off the MD-11s.
During the MD-11 grounding, UPS increased ground freight, repositioned aircraft, and leased additional planes at an added $50 million cost. These efforts helped offset capacity loss during peak season but also contributed to higher costs in its U.S. segment.
The new 767 aircraft will phase in gradually—five in the first half of 2026, ten in the second half, and three in early 2027—as UPS seeks to reduce reliance on leased capacity and boost fleet efficiency.
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Staff Report
Staff Report
Dan Craft
