28 Oct UPS Purchases Boeing 747-8F With Eye On Future
UPS has ordered 14 Boeing 747-8F aircraft from Boeing. Additionally the cargo carrier has options to double the exiting order. The firm orders have a catalog value of $5.3B.
United Parcel Service currently operates a fleet of 236 aircraft including 11 Boeing 747-400F aircraft.
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Brendan Canavan, president, UPS Airlines, said the following about the order:
These aircraft are a strategic investment for increased capacity for UPS customers around the globe. The 747-8 will allow UPS to upsize our network in both new and existing markets.
The order primarily fits the fleet from a fleet expansion point of view offering 16% higher revenue potential.
UPS adding to Boeing backlog
The order from United Parcel Service is a much needed one as Boeing so far has struggled to keep the Boeing 747-8 production line open. With a production rate of 6 aircraft per year, Boeing’s backlog now stretches about 6.5 years out.
The order news comes just days after AeroAnalysis has published an article on SeekingAlpha about the Boeing 747 backlog. The article can be found here.