"UPS Takes Over as U.S. Postal Service's Main Air Cargo Provider, Replacing FedEx"

UPS will replace FedEx as the United States Postal Service's primary air cargo provider, ending FedEx's more than 20-year partnership with USPS. The financial terms of the contract were not disclosed, but UPS described the award as "significant." FedEx's shares fell nearly 2% following the announcement, and the company stated that its profitability would improve in fiscal 2025 despite the loss of the contract. USPS' payments to FedEx shrank to about $1.7 billion in fiscal 2023, from $2.4 billion in fiscal 2020, as the agency reorganizes its operations to accommodate changes in customer behavior and demand.