UPS reports revenue increase despite tough airfreight market

UPS’s supply chain and freight division recorded a 13% improvement in revenues during the second quarter of the year despite “weak conditions” in air forwarding.
The express giant’s supply chain and freight business saw second-quarter revenues reach $2.5bn compared with 2.2bn last year, largely thanks to the acquisition of Coyote Logistics during the third quarter of 2015.
It said that weak market conditions in the airfreight and less-than-truckload markets had weighed on top-line growth.
Despite this, the forwarding business expanded operating margins “through a focus on revenue quality and operating cost reductions”.
Overall, UPS saw second-quarter revenues increased by 3.8% to $14.6bn despite the negative effect of reductions in fuel surcharges and currency exchange rates. Net income was up by 3.2% on last year to $1.3bn.
UPS chairman and chief executive David Abney said: “We are investing to expand our global network, implementing new technologies and capturing new revenue in high-growth markets.
“These strategic investments in our diversified business again this quarter generated strong value for our customers and shareowners.”

Share this story

Related Topics

Latest americas news

Air Cargo Forum the latest event to be cancelled

By Damian Brett

Tiaca and event organiser Messe München have announced the cancellation of the 2020 Air Cargo Forum (ACF), due to take…

Read More

Share this story

Atlas Air sees share price soar as investors circle

By Damian Brett

Atlas Air Worldwide Holdings has seen its share price increase rapidly since the start of the year as investors look…

Read More

Share this story

Chapman Freeborn partners with ATC in South America

By Damian Brett

Charter firm Chapman Freeborn has appointed sales agent ATC Aviation Services as its commercial representative for Latin America. The deal…

Read More

Share this story