LOS ANGELES - United Parcel Service expects its newly won U.S. Postal Service air cargo contract to be profitable in its first year and throughout the more than five-year deal, after rival FedEx struggled with the business, Chief Executive Carol Tome said on Tuesday.
"In contrast to traditional hub and spoke models, we don't have to run all of the air volume through our main air hub," Tome said. UPS is working closely with the postal service to onboard the business ahead of this year's holiday peak season, Tome said. The company has "plenty of space on aircraft" for the additional volume and will hire more than 200 pilots, she said.
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