Originally Posted by
DangaZone
CAPEX I UPS I FDX
2016 $2.965B $4.818B
2017 $5.227B $5.116B
2018 $6.283B $5.663B
2019 $6.380B $5.490B
2020 $5.412B $5.868B
5YR SUM $26.267B $26.955B
FexEx management said in the Q4'FY21 earnings call that FY'22 planned CapEx of $7.2B is about 8% total revenue, with half slated for growth and half for "important projects" like fleet replacement (which UPS has not undergone in recent history). In the UPS Investor & Analyst Day, UPS said CapEx moving forward will be about 5% total revenue with 35% to maintenance and 65% to growth.
At the end of 2016 UPS had 237 Browntails. In very late Sept 2017 we got our first 747-8; by mid-2022 the fleet will have grown by 53 airframes (28 747-8, 20 B767, 5 MD11) to a total of 290 Browntails.
To update this post: The CEO shared with the IPA that the company is looking to add roughly 14 more tails on top of previously announced growth by the end of 2023 and in addition to any MD replacement order. No announcements on what airframes and certainly no publicly announced orders at this point, but it’s possible that Davis 2.0 will wind up presiding over a period of significant growth despite her very publicly stated desire to focus on “better not bigger”. My personal opinion is that we will grow as needed to meet the demand of customers who are willing to pay a premium for our services as we slowly offload larger less profitable customers. That high quality demand is simply greater than the CEO first thought it would be when she was focused on cutting capex to focus on profitability.