UPS has placed an order with Boeing for 19 medium widebody 767-300 freighters in response to significant ongoing air cargo demand, especially for e-commerce parcels that dominate volumes moving through its network, the companies announced Tuesday. The express carrier will take delivery of the new aircraft between 2023 and 2025.
The deal caps a record-breaking year for Boeing freighter sales, including 80 firm orders for large production all-cargo jets and more than 80 orders for converted freighters.
“The Boeing 767 is the most versatile aircraft we operate,” said UPS Operations President Nando Cesarone in a joint news release.
UPS (NYSE: UPS) was the launch customer for the 767 freighter in 1995 and has ordered 91 of the aircraft. The carrier currently operates 236 Boeing freighters, including the 747, 757 and MD-11. UPS Airlines operates aircraft, of which 282 are owned and the remainder are leased or chartered. As of August, there were 78 B767s in the fleet, more than any other aircraft type.
The freighter version of the 767-300 Extended Range jet carries up to 52.4 tons of cargo with a range and size that offers flexibility for long-haul, regional and feeder markets.
At a list price of $220 million per aircraft, the deal is worth about $4.2 billion. UPS is likely to get a discount.
Boeing (NYSE: BA) forecasts air cargo demand will increase at an annual rate of 4% over the next 20 years and that the global freighter fleet will grow by 70%.
The three global express delivery giants routinely invest heavily in their integrated logistics networks, including aircraft. Last summer, FedEx Express (NYSE: FDX) ordered 20 767 freighters from Boeing. In January, DHL Express purchased eight Boeing 777 freighters.
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