UPS attempts to offload more than 100 pilots due to weaker demand levels
05 / 09 / 2023
UPS is offering severance packages to hundreds of pilots as the express giant reacts to lower demand levels.
The company said that the move comes as it regularly assesses operations and makes adjustments accordingly.
“As part of our effort to efficiently manage our airline, we are offering a voluntary separation benefit to eligible UPS pilots,” a company spokesperson told Air Cargo News.
“Those who choose to accept the offer will receive a comprehensive compensation package that includes cash and healthcare benefits.”
“Our company has a well-planned strategy to keep up with changing market demands, and effectively manage our airline.”
The Independent Pilots Association (IPA) confirmed reports from news station WDRB that a total of 167 pilots had been offered severance packages – 157 senior captains and 10 senior first officers.
In total, the express firm employs around 3,400 pilots.
“Broadly, the airline is overstaffed coming out of the pandemic shipping bubble,” the IPA said.
“Each pilot who qualifies for the buyout will need to make the decision if the offer is good/right for them. This is a response/discussion that comes down to the individual IPA member.”
The airline has been busy reducing its fleet of aircraft over the last 12 months.
At the end of June, UPS’ fleet stood at 571 compared with 582 12 months earlier. Most of the reduction has come from its operating leases and charters, which have reduced to 278 from 292 aircraft.
The airline has also been looking to offload its own older three-engine MD-11Fs with two having left the fleet by the end of June compared with last year.
A further three MD-11Fs have been retired since the end of June and another two are due to leave the fleet by the end of the year.
The company saw its domestic next-day air package volumes fall 11.4% year on year in the second quarter while international package volumes were down 6.4%.
Overall revenues at the company fell by 10% in the second quarter of the year and the company reduced its revenue and profit targets for the full year.