UPS to Buy $1.5 Billion of Boeing Freighters as Air Cargo Booms
UPS to Buy $1.5 Billion of Boeing Freighters as Air Cargo Booms
(Bloomberg) -- United Parcel Service Inc. agreed to buy 19 Boeing Co. freighter jets as soaring e-commerce and snarled shipping lines lead to a boom in air-cargo demand.
The package-delivery giant plans to accept the 767 Freighters between 2023 and 2025, according to a statement Tuesday. The planes have a combined base value of $1.5 billion, according to aircraft appraiser Avitas.
Chicago-based Boeing’s shares surged 5.9% in New York. Shares of Atlanta-based UPS gained 2.3%.
The purchase bolsters the UPS fleet and adds to a record-breaking year for Boeing’s freighter sales. Air-cargo demand has surged during the pandemic amid a rise in time-sensitive online shopping that is expected to last even after Covid-19 subsides. More companies have turned to air transport lately as ocean-cargo routes suffer from delays.
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