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UPS increases fleet by adding 14 freighters to meet demand

ATLANTA's United Parcel Service (UPS), which has its Worldport global air hub at Louisville International Airport, plans to add 14 Boeing 747-8 cargo planes to its 500-aircraft fleet as demand for its air-shipping services continues to grow, Louisville's WDRB news reported.

"This is really about opportunity our customers are asking us for additional capacity, said UPS chief executive David Abney.

The company recently reported revenue for the period between July and September totalled US$14.9 billion, which slightly exceeded expectations.

UPS vice president Kate Gutmann said the company is preparing for a record holiday season with a projected 700 million deliveries - 100 million more than last year. She said the record volume is due to the "dramatic growth of online shopping".

The company is on track to hire 95,000 temporary workers for this year's "peak" period - including thousands in Louisville - despite a tight job market that makes it harder to find warehouse workers than in previous years.

UPS officials fielded multiple questions during the conference call about its investment in the cargo planes given that its biggest customer - e-commerce retailer Amazon - is building its own delivery network, including 40 leased jetliners.

Mr Abney called Amazon a "good customer" with a "strong, mutually beneficial relationship" with UPS.

"Amazon and all of the other shippers will get the benefit" of UPS' increased capacity for air cargo, he said.

Said UPS chief commercial officer Alan Gershenhorn: "Our e-commerce value proposition is really second to none - we're excited about the overall prospects of e-commerce in the marketplace."