FedEx Express

Following the news that UPS has been awarded what it labeled a “significant air cargo contract” by the United States Postal Service (USPS), which used to be handled by its biggest competitor, FedEx, there has been no shortage of feedback and opinions on the development.

Atlanta-based global freight transportation and logistics services provider UPS said earlier today it has been awarded what it labeled a “significant air cargo contract” by the United States Postal Service (USPS). UPS officials said that this contract takes effect immediately while also expanding the existing relationship between UPS and USPS. And the company added that after a transition period, UPS will be the primary air cargo provider for USPS, moving the majority of USPS’s United States air cargo.

The current state of the business relationship between Memphis-based freight transportation and logistics services provider FedEx and the United States Postal Service (USPS) received a fair amount of attention on the former’s fiscal second quarter earnings call late last year.

Quarterly revenue—at $22.2 billion—was down 2.6% annually, and operating income—at $1.42 billion—increased 14.8%. Net income, at $1.01 billion, topped the $820 million recorded for the same quarter a year ago. Adjusted earnings per share came in at $3.99, up 20% annually while falling short of Wall Street expectations, at $4.19.

ALPA said that the pilots rejected the deal by a 57% to 43% margin. And as for next steps, it added that it expects the National Mediation Board to convene a status conference with the pilots and FedEx, with the caveat that there is no time requirement for this to occur.