Atlanta, January 28 - United Parcel Service (UPS) has officially retired its entire fleet of McDonnell Douglas MD-11 cargo aircraft, marking the end of an era for the trijet in one of the world's largest air cargo operations. The decision, announced during the company's fourth-quarter 2025 earnings call on January 27, 2026, accelerated longstanding fleet modernization plans following a catastrophic incident involving an MD-11. The aircraft type, which UPS had operated since the early 2000s primarily on long-haul international routes, represented about 9% of the carrier's overall fleet prior to the grounding. This retirement aligns with broader industry shifts toward more fuel-efficient and reliable widebody freighters, such as Boeing 767s and 747-8Fs, as cargo operators prioritize operational efficiency and cost management.
The catalyst for the accelerated timeline was a fatal crash on November 4, 2025, when UPS Flight 2976, an MD-11 departing from Louisville Muhammad Ali International Airport, suffered a structural failure shortly after takeoff. The left engine detached from the wing, preventing the aircraft from gaining sufficient altitude, resulting in a crash that claimed the lives of the three crew members on board and 12 individuals on the ground. The incident caused significant destruction, impacting nearby facilities and underscoring the severity of the event. In response, UPS, along with other operators, grounded its MD-11s out of caution, with the Federal Aviation Administration issuing a directive to halt operations pending inspections and reviews.
Preliminary findings from the National Transportation Safety Board indicated fatigue cracks in critical engine mount components that had not been detected during prior maintenance checks, with the last relevant inspection dating back to 2021. These issues contributed to the in-flight separation and subsequent loss of control. The grounding disrupted peak-season operations, prompting UPS to reposition aircraft and increase ground transportation to maintain delivery commitments. The experience demonstrated the network's resilience without the MD-11s, reinforcing the company's confidence in proceeding with full retirement during the fourth quarter of 2025.
The move incurred a non-cash, after-tax charge of $137 million for UPS, reflecting the write-off of the remaining aircraft. This step completes a gradual phase-out process that had begun years earlier, as the aging MD-11, originally produced until 2000, faced increasing maintenance demands and economic pressures compared to newer models. With the fleet now fully retired, UPS continues its transition to a modernized air cargo lineup, ensuring sustained reliability in global package delivery while honoring the lessons from this tragic event in aviation safety.
