If anyone thinks UPS bid this contract at a rate to loose money, they truly do not know UPS management at all. Especially when we are dumping some routes due to not meeting profitability standards. A lot of this volume will move on existing 2DA flights, new ones added with existing assets (no new capital expenditures required), very little risk for UPS, unlike Fedex which basically created a sort window, added assets years ago to meet demand for the USPS, and now stuck with extra lift and assets.

UPS has always been ruthless when it comes to operating margins, just as focused today.