UPS Shuns ‘Slash-and-Burn’ to Blunt Drop in Air Packages
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United Parcel Service Inc. is trimming flight hours and miles driven to reduce costs as customers shy away from pricier overnight packages to cheaper two-day and deferred offerings.
UPS is trimming main aircraft routes out of Asia to an average of 7.5 from 8, and will lower headcount through attrition and slower hiring, Chief Financial Officer Kurt Kuehn said. The company will also cut discretionary spending on projects that don’t have an immediate payoff, he said.