UPS Q4 2025 Earnings Report and 2026 Outlook with Amazon Volume Reduction
UPS reports Q4 2025 earnings with $24.5B revenue, plans 2026 Amazon volume reduction, targets $3B cost savings and $89.7B revenue.
This article is based on an official press release and financial statements from UPS.
United Parcel Service (UPS) has released its fourth-quarter 2025 financial results, reporting consolidated revenues of $24.5 billion and a non-GAAP adjusted diluted earnings per share (EPS) of $2.38. While revenue saw a year-over-year decline of approximately 3.3%, the logistics giant highlighted significant improvements in revenue quality and operational agility.
According to the company’s official statement released on January 27, 2026, full-year 2025 revenue totaled $88.7 billion. CEO Carol Tomé described the past year as a period of “considerable progress,” noting that the company has been actively strengthening its network to prepare for future growth. Looking ahead, UPS has issued guidance for 2026, forecasting full-year revenue of approximately $89.7 billion as it executes a planned reduction in volume from its largest customer, Amazon.
Despite a challenging volume environment, UPS maintained strong profitability metrics through pricing discipline and cost management. The company reported a GAAP operating profit of $2.6 billion for the fourth quarter, with an adjusted operating margin of 11.8%.
Data from the earnings report indicates that while overall volume dipped, the revenue generated per package increased, signaling a successful pivot toward higher-value shipments.
The GAAP results were impacted by pre-tax charges totaling $238 million. These included a $137 million non-cash charge related to the write-off of the company’s MD-11 aircraft fleet and $101 million in transformation costs associated with network reconfiguration.
Performance varied across the company’s three primary business segments, reflecting broader economic shifts and internal strategy adjustments:
UPS leadership has positioned 2026 as a pivotal year. The company’s guidance projects revenue of approximately $89.7 billion and an adjusted operating margin of roughly 9.6%. A central component of this outlook is the management of the relationship with Amazon.
In its forward-looking statements, UPS detailed a strategy referred to as the “Amazon glide-down.” The company plans to reduce Amazon volume by an additional 1 million pieces per day in 2026. This move is consistent with UPS’s broader “Better not Bigger” strategy, which prioritizes high-margin B2B and SMB (small and medium-sized business) volume over low-margin e-commerce density.
“Looking ahead, upon completion of the Amazon glide-down, 2026 will be an inflection point in the execution of our strategy to deliver growth and sustained margin expansion.”
Carol Tomé, CEO of UPS
To offset inflationary pressures and the reduction in specific volume streams, UPS is targeting $3 billion in cost savings for 2026. These savings are expected to come from the “Network of the Future” initiative and “Efficiency Reimagined” programs.
Operational adjustments made in 2025 have already set the stage for these efficiencies. According to the earnings report, UPS reduced its operational workforce by approximately 48,000 positions (including seasonal adjustments) and closed daily operations at 93 buildings throughout the year. Additionally, the company completed the retirement of its aging MD-11 aircraft fleet in the fourth quarter, a move aimed at modernizing air operations and reducing the company’s carbon footprint.
The data released by UPS suggests a decisive commitment to margin over market share. By voluntarily shedding 1 million packages a day from Amazon, UPS is effectively betting that its network can run more profitably with fewer, higher-yielding boxes than with a flood of low-margin parcels.
The 8.3% increase in U.S. Domestic revenue per piece is a critical indicator that this strategy is gaining traction. However, the forecast of a “bathtub effect”, a weaker first half of 2026 followed by a stronger second half, indicates that the transition will not be seamless. Investors will likely watch the adjusted operating margin closely; at a projected 9.6% for 2026, it remains healthy, but the pressure will be on the “Network of the Future” automation initiatives to deliver the promised $3 billion in savings to protect that bottom line.
UPS continues to return significant capital to investors. In 2025, the company returned $6.4 billion through dividends and share repurchases. For the first quarter of 2026, the UPS Board of Directors has approved a dividend of $1.64 per share, payable on March 5, 2026. The company anticipates total dividend payments of approximately $5.4 billion for the full year of 2026.
What is the UPS revenue outlook for 2026? How is UPS changing its relationship with Amazon? What happened to the UPS MD-11 fleet?
UPS Reports Q4 2025 Earnings, Targets 2026 as Strategic ‘Inflection Point’ Amid Amazon Volume Reduction
Financial Performance: Q4 and Full Year 2025
Key Fourth Quarter Metrics
Segment Breakdown
2026 Outlook: The Amazon ‘Glide-Down’ and Network Efficiency
Strategic Shift Away from Amazon
Cost Savings and Network Modernization
AirPro News Analysis
Shareholder Returns
Frequently Asked Questions
UPS forecasts full-year 2026 revenue to be approximately $89.7 billion.
UPS is executing a “glide-down” strategy, planning to reduce Amazon volume by another 1 million pieces per day in 2026 to focus on higher-margin business.
UPS completed the retirement of its MD-11 aircraft fleet in the fourth quarter of 2025, incurring a non-cash charge of $137 million.Sources
Photo Credit: Spectrum News 1 – Jonathon Gregg
Aircraft Orders & Deliveries
Rolls-Royce Secures Engine Order for Delta Air Lines Widebody Fleet
Rolls-Royce signs deal with Delta Air Lines for 62 engines powering Airbus A350-900 and A330-900neo aircraft, deliveries from 2029.
Rolls-Royce has officially announced a significant new agreement with Delta Air Lines for 62 widebody engines to power the carrier’s expanding fleet of Airbus aircraft. Announced on January 28, 2026, the deal solidifies the British manufacturer’s position within Delta’s long-haul strategy, introducing the upgraded Trent XWB-84 Enhanced Performance (EP) engine to the airline’s operations.
According to the company’s statement, the order supports Delta’s acquisition of 15 Airbus A350-900s and 16 Airbus A330-900neo aircraft. Deliveries for these new airframes are scheduled to begin in 2029. The agreement also includes a long-term TotalCare® service contract, Rolls-Royce’s flagship “power-by-the-hour” maintenance package designed to ensure predictable operational costs and fleet availability.
The order comprises two distinct engine types tailored to Delta’s mixed Airbus fleet. Rolls-Royce confirmed the specific breakdown of the 62 engines as follows:
Rob Watson, President of Civil Aerospace at Rolls-Royce, highlighted the significance of the partnership in the official release:
“Rolls-Royce is proud to have Delta Air Lines as our largest partner in the Americas… This reorder underpins our combined commitment to reliability, durability, and customer success.”
A focal point of this announcement is Delta’s selection of the Trent XWB-84 Enhanced Performance (EP) variant for its new A350 fleet. According to technical specifications released by Rolls-Royce, the EP variant represents an evolution of the standard Trent XWB-84, which is already the exclusive powerplant for the Airbus A350 family.
The manufacturer states that the EP variant delivers a 1% reduction in fuel consumption compared to the original model. While a single percentage point may appear nominal, across a Commercial-Aircraft fleet’s operational lifespan, this translates to substantial financial savings and a measurable reduction in CO₂ emissions.
Rolls-Royce detailed several engineering improvements that contribute to this efficiency:
The EP variant received EASA certification in April 2025, with FAA certification expected to follow shortly to align with the 2029 delivery timeline.
This order is a critical element of Delta’s broader fleet modernization program. By retiring older, less efficient aircraft such as the Boeing 767-300ER, Delta is transitioning to next-generation widebodies that offer superior operating economics.
Ed Bastian, CEO of Delta Air Lines, commented on the strategic value of the new aircraft in the press statement: “As we grow our international footprint and prepare our fleet to serve expanded long-haul markets, these aircraft will enhance our capabilities and elevate our premium offerings.”
The A350-900s are expected to serve ultra-long-haul premium routes, such as those connecting the U.S. to the Asia-Pacific region, while the A330neos will likely be deployed on high-demand transatlantic and transpacific corridors.
From our perspective, this order represents a vital “defensive win” for Rolls-Royce. While Delta recently diversified its fleet with an order for Boeing 787-10 Dreamliners (powered by GE Aerospace), Rolls-Royce has successfully defended its territory on the Airbus side of the ledger.
Because the A350 and A330neo platforms are exclusively powered by Rolls-Royce, any Airbus widebody order automatically benefits the Derby-based manufacturer. However, the inclusion of the TotalCare service agreement is the true financial anchor, locking in long-term aftermarket revenue. Furthermore, the introduction of the “EP” variant demonstrates Rolls-Royce’s ability to respond to airline demands for continuous incremental efficiency improvements, a necessary evolution to compete with rival engine technologies.
Rolls-Royce Secures Major Engine Order for Delta Air Lines’ Widebody Expansion
Breakdown of the Deal
Technical Spotlight: The Trent XWB-84 EP
Efficiency and Engineering Upgrades
Strategic Context for Delta Air Lines
AirPro News Analysis
Sources
Photo Credit: Rolls-Royce
Regulations & Safety
British Airways A350-1000 Lands Safely After Losing Wheel in Las Vegas
A British Airways Airbus A350-1000 lost a main landing gear wheel departing Las Vegas but safely completed its transatlantic flight to London Heathrow.
This article summarizes reporting by Flightradar24 and Ian Petchenik.
On Monday, January 26, 2026, a British Airways Airbus A350-1000 lost a wheel from its main landing gear assembly during departure from Las Vegas Harry Reid International Airport (LAS). Despite the mechanical failure, the flight crew elected to continue the 10-hour journey to London Heathrow (LHR), where the aircraft landed safely the following afternoon.
Visual evidence of the incident was captured and reported by Flightradar24. According to their data and video footage, the right-rear wheel of the right main landing gear detached as the aircraft retracted its gear shortly after takeoff. The flight, designated BA274, proceeded to climb to a cruising altitude of 39,000 feet and completed the crossing without further incident.
We have compiled the details of this event, the operational decisions made by the crew, and the technical context regarding the safety of the Airbus A350-1000.
Flight BA274 departed Las Vegas runway 26R at approximately 9:06 PM PST. Reporting by Flightradar24 highlights that sparks were visible coming from the gear assembly just before the wheel separated. The wheel fell to the ground as the gear doors were closing, a sequence captured on a live stream camera operated by the flight tracking service.
According to airport officials cited in general reporting, the detached wheel was recovered on airport property in Las Vegas. It reportedly caused no damage to ground infrastructure or other aircraft. The aircraft involved, registered as G-XWBN, is a high-capacity wide-body jet that had been scheduled for the 5,200-mile service to the United Kingdom.
Following the separation of the wheel, the pilots decided to continue to London rather than dumping fuel and returning immediately to Las Vegas. While such a decision may appear risky to casual observers, it aligns with standard operating procedures for modern long-haul aircraft equipped with redundant landing gear systems.
Upon arrival in London on Tuesday, January 27, the aircraft landed on runway 09L at 14:28 GMT. AirLive.net reported that the aircraft taxied to Terminal 5 under its own power. Emergency services met the aircraft as a precaution,standard protocol for landing gear irregularities,but no intervention was required, and no injuries were reported among passengers or crew. In our analysis of the A350-1000’s design, the decision to continue the flight highlights the significant engineering redundancy built into this specific airframe. Unlike smaller narrow-body aircraft such as the Boeing 737 or Airbus A320, which typically feature two wheels per main gear strut, the A350-1000 utilizes a six-wheel bogie design.
With six wheels on each side, the aircraft has a total of 12 main landing gear wheels. The loss of a single wheel represents a reduction in braking and load-bearing capacity that is well within the safety margins calculated by Airbus. The remaining 11 wheels are capable of supporting the aircraft’s maximum takeoff weight, which can exceed 300 tonnes. Consequently, while a lost wheel is a serious maintenance lapse, it does not typically constitute a critical flight safety emergency for this aircraft type.
The aircraft, G-XWBN, was removed from service immediately upon arrival at Heathrow for inspection and repairs. British Airways has not yet issued a detailed public statement regarding the specific cause of the failure, such as whether it was a bearing failure or a torque issue.
Similar incidents, while rare, have occurred across the industry. For instance, reporting notes that a United Airlines Boeing 757 lost a wheel departing Los Angeles in July 2024. In that instance, the aircraft diverted to Denver. The successful conclusion of flight BA274 underscores the effectiveness of modern aviation safety standards, which ensure aircraft remain controllable and safe even when mechanical components fail.
British Airways A350-1000 Completes Transatlantic Flight After Losing Wheel on Departure
Incident Timeline and Visual Evidence
Operational Decision: Why the Flight Continued
AirPro News Analysis: Engineering Redundancy
Aftermath and Industry Context
Sources
Photo Credit: X – Reddit
Regulations & Safety
Satena Flight NSE 8849 Crashes in Colombia’s Catatumbo Region
Satena flight NSE 8849 crashed in Colombia’s Catatumbo region, killing all 15 onboard. Investigation points to weather and terrain factors.
On January 28, 2026, a regional flight operated by SEARCA on behalf of state-owned airline Satena crashed in the mountainous Catatumbo region of Norte de Santander, Colombia. Authorities have confirmed that all 15 occupants on board, 13 passengers and two crew members, perished in the accident. Among the victims was Diógenes Quintero Amaya, a sitting Congressman representing the “Peace Seats” (Curules de Paz), marking a significant political loss for the region.
According to reporting by The City Paper Bogota, the aircraft lost contact with air traffic control shortly after departing from Cúcuta. The wreckage was subsequently located in a rural sector known for its rugged terrain and adverse weather conditions. The Civil Aviation Authority (Aerocivil) has launched a formal investigation into the cause of the tragedy.
The flight, designated as NSE 8849, was performed by a Beechcraft 1900D, a twin-turboprop airliner registered as HK-4709. The aircraft was operated by Servicio Aéreo de Capurganá (SEARCA) under a contract with Satena, the Colombian state airline tasked with connecting remote regions of the country.
Based on data released by local authorities, the flight timeline unfolded as follows:
The crash site was identified in the Curasica sector of La Playa de Belén. Search and rescue operations were initially hampered by the failure of the aircraft’s emergency locator beacon to activate, forcing authorities to rely on reports from local residents and aerial reconnaissance to pinpoint the wreckage.
The passenger manifest included a mix of civilians, political figures, and flight crew. The death of Representative Diógenes Quintero Amaya has drawn national attention. Quintero held one of the 16 “Peace Seats” created by the 2016 peace agreement to ensure representation for victims in conflict-affected zones like Catatumbo.
In addition to Representative Quintero, the victims included Carlos Salcedo, a candidate campaigning for a Peace Seat in the upcoming elections, and Juan David Pacheco, a former city councilman of Ocaña. The flight crew was identified as Captain Miguel Vanegas and Co-pilot Captain José de la Vega.
The remaining passengers were identified as: “Satena Airlines confirmed the loss of the aircraft and expressed condolences… [emphasizing] that the plane was operated by SEARCA and had valid certifications.”
, Summary of Satena statement via The City Paper Bogota
The Colombian Civil Aviation Authority (Aerocivil) has established a Unified Command Post (PMU) to oversee the recovery and investigation. While no official cause has been determined, preliminary reports suggest that environmental factors may have played a role.
The Catatumbo region is characterized by dense jungle and steep mountains, presenting significant challenges for aviation. Reports indicate that weather conditions were poor at the time of the accident, with low visibility cited as a potential contributing factor. While the area is known for the presence of armed groups, authorities have stated there is currently no evidence of foul play or an attack on the aircraft.
Recovery teams, including the Colombian Aerospace Force and the Red Cross, are currently working to recover the victims’ bodies and the aircraft’s flight recorders (“black boxes”), which are critical for determining the sequence of events leading to the crash.
The Challenge of Andean Connectivity
This incident highlights the persistent risks associated with regional aviation in the Andes. The route between Cúcuta and Ocaña is short but traverses complex topography where weather can change rapidly. The reliance on turboprop aircraft like the Beechcraft 1900D is standard for these routes due to runway limitations at regional airports like Aguas Claras.
Furthermore, the loss of a “Peace Seat” representative underscores the physical risks undertaken by officials working to integrate Colombia’s most isolated and historically violent regions. The necessity of air travel in these zones, often the only viable alternative to dangerous roads, remains a critical infrastructure challenge for the state.
What caused the crash of Satena flight NSE 8849? Was the flight operated directly by Satena? Who was the high-profile politician on board? Were there any survivors? Sources: The City Paper Bogota
Satena Flight NSE 8849 Crashes in Colombia’s Catatumbo Region; No Survivors Found
Flight Details and Timeline
Victims and Political Impact
Confirmed Casualties
Investigation and Environmental Factors
Terrain and Weather
AirPro News Analysis
Frequently Asked Questions
The official cause is under investigation by Aerocivil. Early reports cite adverse weather and low visibility in the mountainous Catatumbo region as likely factors.
No. The flight was operated by SEARCA (Servicio Aéreo de Capurganá) on behalf of Satena. The aircraft was a Beechcraft 1900D.
Diógenes Quintero Amaya, a Congressman holding a “Peace Seat” representing victims of the armed conflict in the Catatumbo region, was among the deceased.
No. Authorities have confirmed that all 15 people on board (13 passengers and 2 crew members) died in the crash.
Photo Credit: Airliners.net
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