UPS retires MD-11 aircraft fleet after deadly crash

Group 1 - UPS has grounded its MD-11 fleet following a deadly crash, which constituted about 9% of its air fleet, primarily used for domestic operations [5][7] - The company incurred a non-cash, after-tax charge of $137 million for writing off the MD-11s, aiming to build a more efficient global network [7] - UPS has repositioned aircraft from other regions to the U.S. and increased ground volume to maintain operations during peak season, incurring $50 million in incremental lease costs [3][4] Group 2 - UPS plans to introduce 18 new Boeing 767 aircraft over the next 15 months to replace the retired MD-11s, with five expected in the first half of the year and ten in the second half [4][7] - The grounding of the MD-11 fleet contributed to an 8.9% year-over-year increase in UPS' cost per piece in its U.S. segment [3]