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Re:

Farewell Tri-Jet: UPS Retired Its MD-11 Fleet in 2025

UPS completed its MD-11 retirement in Q4 2025 after a temporary safety grounding. The shift accelerated fleet modernization and brought near-term capacity and leasing costs.
From TheFinanceBase Team2 min to read
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UPS completed the retirement of its MD-11 fleet in the fourth quarter of 2025, accelerating its fleet-modernization plans. The decision followed a temporary safety grounding announced in November; UPS later reported that the change brought capacity constraints and higher aircraft-leasing expense as it worked to adjust its network.

When did UPS retire its MD-11 fleet?

The transition happened in two stages. On November 7, 2025, UPS said it was temporarily grounding its MD-11s after an aircraft-manufacturer recommendation, describing the move as precautionary. In its January 27, 2026 earnings announcement, the company said the fleet had been permanently grounded and retired during Q4 2025.

UPS chief executive Carol Tomé described the retirement as an acceleration of the company’s modernization plans. The company said MD-11s represented about 9% of its airline fleet when it announced the temporary grounding in November 2025. UPS’s November 7 fleet statement and its Q4 2025 earnings release document the change.

Why did UPS ground the planes?

UPS said the temporary grounding followed an aircraft-manufacturer recommendation and was made “out of an abundance of caution and in the interest of safety.” The company’s account does not establish that the November accident caused the later retirement decision.

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UPS identified Flight 2976, traveling from Louisville to Honolulu, as an MD-11 with three crew members. The accident occurred in Louisville on November 4, 2025. UPS said it grounded its MD-11 fleet before the FAA issued an Emergency Airworthiness Directive for MD-11 operators. These statements describe the timeline, not a final finding about the accident’s cause or responsibility. UPS’s accident statement provides the company’s account.

What did the retirement cost UPS?

UPS reported two related but distinct accounting figures. Its January 2026 earnings release cited a $137 million non-cash, after-tax write-off related to the MD-11 fleet. Its 2025 Form 10-K reported a $182 million Q4 charge related to retirement, primarily for aircraft and parts inventory. The figures use different descriptions and tax treatment, so they should not be read as competing estimates of the same measure.

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How is UPS replacing the MD-11 capacity?

UPS’s stated transition centers on fleet modernization and Boeing 767-300 aircraft, but the company’s disclosures do not establish a one-for-one replacement for each retired MD-11. At December 31, 2025, UPS reported 18 Boeing 767-300 aircraft on order. Its annual filing also notes that the MD-11 fleet was permanently grounded and subsequently retired in Q4, clarifying that a year-end MD-11 reporting line does not mean those aircraft remained in operation.

UPS operates a hub-and-spoke air network centered on Louisville Worldport. In its filing for the quarter ended June 30, 2026, the company said the MD-11 retirement had contributed to capacity constraints and increased third-party aircraft lease expense. UPS also reported five Boeing 767-300 deliveries during the first half of 2026, which began to reduce that expense. The filing describes an operational transition—covering capacity while replacement aircraft arrive—rather than providing aircraft-level data for a technical comparison of the MD-11 and 767.

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What remains unknown about the accident?

The cited UPS statements and filings do not provide a final accident-investigation conclusion or safety recommendations. The grounding, retirement, and subsequent capacity effects therefore should not be treated as evidence of a determined accident cause.

Sources: UPS statement on MD-11 fleet (November 7, 2025); UPS statement on aircraft accident (November 2025); UPS Q4 2025 earnings release (January 27, 2026); UPS 2025 Form 10-K; UPS Form 10-Q for the quarter ended June 30, 2026.

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  • Airplane collectibles: The airplane model kit includes a display stand and a set of wheels. It can be displayed using the stand or placed directly on a table. Whether you’re an aviation hobbyist, Aviation Workers or learners, or just need a display plane model to inspire conversation, the American MD-11 airplane model is a must-have for your collection.
  • Creative Gift: A thoughtful Father’s Day gift, retirement gift, corporate gift, Academic gifts, or birthday gift for any aviation fan. This aircraft collection model symbolizes elegant, sky dreams and memories of a wonderful journey – a meaningful addition to any office or home display. If any problems arise with the qiyumoke airplane model, we can provide a reasonable solution within 24 hours.

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