NTSB Reviews Cracks in UPS MD-11 Crash Investigation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: Newsfilter
- Crash Investigation: The National Transportation Safety Board (NTSB) is reviewing reports of cracks in key components related to the fatal crash of a UPS MD-11 cargo plane in Kentucky last November, which resulted in 15 fatalities, including three crew members and 12 on the ground.
- Structural Fatigue Issues: The NTSB investigation revealed fatigue cracks in the support structure known as the bearing race, which connects the wing to the engine, a problem flagged in a 2011 Boeing report, with multiple crack reports on MD-11 parts over the past decade.
- Design Requirements Review: The hearing is examining not only the design requirements for these components but also the Federal Aviation Administration's (FAA) oversight of the issue over the last two decades to ensure future flight safety.
- Flight Resumption and Fleet Retirement: Following the FAA's lifting of the flight ban on MD-11 aircraft, FedEx has begun to resume operations with this model, while UPS retired its remaining fleet of over two dozen MD-11 cargo jets at the end of last year, reflecting a commitment to addressing safety concerns.
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Analyst Views on UPS
Wall Street analysts forecast UPS stock price to rise
19 Analyst Rating
9 Buy
9 Hold
1 Sell
Moderate Buy
Current: 98.250
Low
80.00
Averages
107.06
High
126.00
Current: 98.250
Low
80.00
Averages
107.06
High
126.00
About UPS
United Parcel Service, Inc. is a global package delivery and logistics provider. Its U.S. Domestic Package segment offers a full spectrum of air and ground package transportation services. Its air portfolio offers time-definite, same-day, next-day, two-day and three-day delivery alternatives as well as air cargo services. Its ground network enables customers to ship using its day-definite ground service. Ground Saver provides residential ground service for customers with non-urgent, lightweight residential shipments. Its International Package segment consists of small package operations in Europe, Middle East and Africa, Canada and Latin America and Asia. It offers a selection of guaranteed day and time-definite international transportation services supported by its brokerage capabilities that facilitate cross-border clearance for international shipments. Its supply chain solutions consist of customized third-party logistics and specialized cold chain transportation solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Structural Fatigue Issues: The NTSB investigation revealed fatigue cracks in the support structure known as the bearing race, which connects the wing to the engine, a problem flagged in a 2011 Boeing report, with multiple crack reports on MD-11 parts over the past decade.
- Design Requirements Review: The hearing is examining not only the design requirements for these components but also the Federal Aviation Administration's (FAA) oversight of the issue over the last two decades to ensure future flight safety.
- Flight Resumption and Fleet Retirement: Following the FAA's lifting of the flight ban on MD-11 aircraft, FedEx has begun to resume operations with this model, while UPS retired its remaining fleet of over two dozen MD-11 cargo jets at the end of last year, reflecting a commitment to addressing safety concerns.
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- Oil Price Volatility: Oil prices resumed their rally after three days of declines, with Brent and U.S. West Texas Intermediate futures both advancing around 2%, highlighting market concerns over energy supply and geopolitical uncertainties.
- Quantum Computing Investment: The U.S. government announced $2 billion in grants to nine firms, with IBM receiving $1 billion, significantly boosting quantum computing stocks and showcasing the ongoing investment surge in the tech sector.
See More
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- Oil Price Impact: U.S. oil prices surged above $100 a barrel, leading to a decline in stocks as investor concerns about inflation reignited, particularly after optimism faded regarding an Iran peace deal.
- Nvidia's Bullish Outlook: Jim Cramer views Nvidia's modest post-earnings pullback as a buying opportunity, suggesting investors gradually build positions despite market volatility driven by rising oil prices.
- Arm Holdings Surge: Following Nvidia's earnings call, Arm Holdings' stock jumped nearly 9%, extending its weekly rally to 35%, with projected CPU-related revenue of about $20 billion this year, solidifying its market position.
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See More
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See More
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- Crash Investigation: The National Transportation Safety Board (NTSB) is reviewing reports of cracks in key components related to the fatal crash of a UPS MD-11 cargo plane in Kentucky last November, which resulted in 15 fatalities, including three crew members and 12 on the ground.
- Structural Fatigue Issues: The NTSB investigation revealed fatigue cracks in the support structure known as the bearing race, which connects the wing to the engine, a problem flagged in a 2011 Boeing report, with multiple crack reports on MD-11 parts over the past decade.
- Design Requirements Review: The hearing is examining not only the design requirements for these components but also the Federal Aviation Administration's (FAA) oversight of the issue over the last two decades to ensure future flight safety.
- Flight Resumption and Fleet Retirement: Following the FAA's lifting of the flight ban on MD-11 aircraft, FedEx has begun to resume operations with this model, while UPS retired its remaining fleet of over two dozen MD-11 cargo jets at the end of last year, reflecting a commitment to addressing safety concerns.
See More
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- Oil Price Fluctuations: International benchmark Brent crude futures fell over 2% to $109.15 per barrel, while West Texas Intermediate futures declined 1.27% to $107.28, reflecting market concerns over energy supply tightness that may lead to future price increases.
- Pressure on Airlines: Ryanair's CFO warned of a potential
See More
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- Transition Challenges and Opportunities: UPS plans to cut Amazon delivery volume by 50% in 2024, which, despite Amazon being its largest customer at 11.8% of total sales, will help reduce low-margin delivery costs and enhance overall profitability.
- Market's Tepid Response: Although UPS faced issues like trade tensions and a weakening macro backdrop in 2025, leading to a decline in shipping demand and reduced investor confidence, the company is still pivoting towards higher-margin customers, indicating long-term potential.
- Growth in SMBs: In Q1 2026, UPS's daily volumes among small and medium-sized businesses rose by 1.6%, with overall revenue per package increasing by 6.5% and healthcare product delivery revenue hitting $3 billion, demonstrating initial success in its transition.
- Optimistic Future Outlook: Management reiterated its 2026 guidance, with analysts forecasting a 12.2% increase in EPS to $8 in 2027; while the current stock trades at a 14x forward P/E, it has historically traded between 15 and 20 times, suggesting potential for future price appreciation.
See More
