LOUISVILLE, Ky.--(BUSINESS WIRE)--Oct. 27, 2005--Automobile drivers may be feeling the pinch at the gas pump, but try fueling the world's ninth-largest airline. That task has prompted UPS to accelerate a fuel conservation program that's now saving more than $1 million each month in fuel costs while reducing the airline's impact on the environment.

"Since we fly more than 265 heavy jet aircraft, environmental concerns have always been factored into the operation of UPS Airlines," said Capt. Tom Olson, UPS Flight Operations fuel manager. "But in today's world of rising prices, it's more critical than ever to operate efficiently. Our fuel conservation initiatives are innovative as well as environmentally friendly."

Olson's role is to constantly re-examine how the airline operates, looking for additional ways to reduce fuel consumption and manage purchases. As a result, UPS has implemented several new procedures,
including:

-- Reducing the amount of extra fuel carried by aircraft.
-- Using only one engine during taxiing.
-- Having more UPS airplanes use electrical power from buildings
and in-ground electrical hook-ups instead of the aircraft's
auxiliary power unit, which is powered by fuel.
-- And slowing down flights to the most fuel efficient speed
possible if it doesn't change an arrival time critical to
making service commitments.

Fuel conservation long has been a priority at UPS Airlines. Worldport, UPS's all-points international air hub in Louisville, was designed to reduce fuel consumption and emissions. Aircraft park directly at the floor level of the facility, which significantly reduces the need to operate ground support equipment, reducing fuel use and emissions.

UPS Airlines also is the first U.S.-based carrier to use the Lufthansa Systems Lido Operations Center, a computerized flight planning system that calculates the most efficient route between two points based on weather, winds, terrain and other factors.

And UPS flight planners for years have considered fuel prices around the world when determining where to fuel the company's aircraft each day. Planners use a formula to calculate the costs and determine whether the price is right.

In addition to such efforts, UPS is testing some additional options, including:

-- Continuous descent approach, or CDA. Continuous descent
approach is an alternative to the normal aviation practice of
stepping down altitudes as you approach an airport for
landing. Test programs are underway at airports in Louisville
and Sacramento, Calif. With CDA, planes use idle power to
glide down, which makes less noise, burns less fuel and
creates fewer emissions. UPS expects to obtain operational
approval from the Federal Aviation Administration (FAA) to
implement CDA for several flights into Louisville by the end
of the year.

-- In coordination with the FAA, UPS is testing Automatic
Dependent Surveillance - Broadcast (ADS-B) technology on 104
of UPS's 757 and 767 aircraft. Among other things, this
technology allows UPS to proactively manage aircraft departure
queues instead of relying solely on air traffic controllers,
which in turn reduces fuel use and emissions. UPS has the
world's only fleet equipped with this advanced technology.

"UPS customers benefit from our ability to carefully manage and conserve fuel throughout the business, particularly when prices are surging," said UPS Airline and International Operations Vice President Bob Lekites. "We believe our customers recognize and appreciate UPS's commitment to efficient operations."

UPS is the world's largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronizing the movement of goods, information and funds. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide. UPS's stock trades on the New York Stock Exchange (UPS), and the company can be found on the Web at UPS.com.

Copyright Business Wire 2005

UPS

UPS

UPS is a global leader in logistics, offering a broad range of solutions including transporting packages and freight; facilitating international trade, and deploying advanced technology to more efficiently manage the world of business. Headquartered in Atlanta, UPS serves 10.6 million customers daily in more than 220 countries and territories worldwide.

For more information, please visit UPS.com or the company’s Sustainability website, ups.com/sustainability. View and subscribe to UPS Horizons, our sustainability newsletter, by visiting ups.com/sustainabilitynewsletter.

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