UPS reduces expected number of furloughed pilots due to better financial condition

UPS reduces expected number of furloughed pilots

NEW YORK — UPS Inc. is reducing the number of its planned pilot furloughs to about 230 from 300 because of its improving financial condition.

The world’s largest shipping company was quick to note, though, that “current economic signals remain mixed, and we believe that the recovery will be gradual.”

It has already furloughed about 109 pilots out of the planned 230. UPS, which has nearly 3,000 pilots, announced the planned furloughs in February.

UPS, which is heavily unionized, said it still has more pilots than it needs because it’s flying less airplanes than several years ago and its existing planes spend less time in the air. The FAA’s move to raise the mandated pilot retirement age to 65 from 60 in 2007 also kept about 200 pilots on staff that would have retired, it said.

“Our business model is pretty simple: packages equal jobs,” spokesman Norman Black said in a statement. “Our hope is that the economy improves to the point we can return more employees to work. We will continue to examine business conditions and adjust pilot staffing levels appropriately in the future.”

UPS, formally known as United Parcel Service Inc., is based in Atlanta.

The company said last month it isn’t expecting U.S. consumers to significantly increase spending anytime soon. Instead, it is counting on businesses to push the economy — and its domestic business — slowly forward with overdue purchases of computers and other electronics.

UPS has said the U.S. economic recovery’s slow pace can be overcome by higher prices and better business overseas. In July, the company raised its full-year earnings prediction for the second time since January.