“Over the next year or so, we will replace much of that capacity with new, more efficient Boeing 767 aircraft.”

In context

“Deliberately shrinking a network is a daunting task, and our success was driven by disciplined planning and effective execution, as well as the added flexibility and efficiency that's coming from deploying state-of-the-art technology and automation across a smaller and nimbler network. This year, we plan to further automate our network, and as a result, we expect to increase the percentage of U.S. volume we process through automated facilities to 68% by the end of the year, up from 66.5% at the end of 2025. Brian Dykes: Our airline is a key part of our network. Carol Tomé: And over the past several years, we've taken a systematic programmatic approach to modernizing our global air fleet. To that end, we made the decision to accelerate our plans and retire all MD-11 aircraft in our fleet. Over the next year or so, we will replace much of that capacity with new, more efficient Boeing 767 aircraft. Now let's move to our economy product we call Groundsaver. At the end of the fourth quarter, we formalized a new relationship with the United States Postal Service to support last-mile delivery of this product. Our new agreement improves the economics associated with this product while ensuring our service expectations are met. Ramp-up has already begun, and over the next several weeks and months, we will continue to increase the flow of Groundsaver volume to the USPS. As in the past, we will use density matching technology to determine which packages will be delivered by United Parcel Service, Inc. versus the USPS. And touching on our activities outside the U.S., our new air hub in The Philippines is slated to open towards the end of 2026, and our expansion in Hong Kong is on track to op”