UPS brings forward retirement of its MD11 fleet in light of Louisville crash

Global parcel and logistics giant UPS has confirmed it will retire all of its entire 27 strong fleet of McDonnell Douglas (Boeing) MD11s replacing them with the incoming Boeing 767 Freighters, 15 of which they expect to have delivered this year.

All MD11s have been grounded since the 8th November following a fatal crash in Louisville, Kentucky last November which saw the No1 engine detach from the aircraft due to structural failure of the pylon. Investigators found that the pylon had structural fatigue cracks which led to the accident.

But now, UPS says that even if the aircraft type is cleared to fly again, theirs won’t resulting in a cost to the company of $137 million after-tax write off.

The airline also incurred costs of $50 million as it had to use other airlines to meet the lost capacity of the MD11 groundings and expects to spend another $100 million on outsourced capacity in 2026.

Speaking to analysts, Chief Financial Officer Brian Dykes said: “Over the next fifteen months, we expect to take delivery of 18 new Boeing 767 aircraft, with 15 expected to deliver this year. As new aircraft join our fleet, we will step down the leased aircraft and associated expenses. We believe these actions are consistent with building a more efficient global network positioned for growth, flexibility and profitability,”

FedEx and Western Global also have a fleet of MD11s and both anticipate the return to service for the type but any such move could depend on any requirements that the NTSB and FAA set out for modifications to the aircraft and the potential for costly repairs.