UPS to buy $1.5 billion of Boeing freighters as air cargo booms

United Parcel Service Inc. agreed to buy 19 Boeing Co. freighter jets as soaring e-commerce and snarled shipping lines lead to a boom in air-cargo demand.

The package-delivery giant plans to accept the 767 Freighters between 2023 and 2025, according to a statement Tuesday. The planes have a combined base value of $1.5 billion, according to aircraft appraiser Avitas, though customers typically receive discounts from list prices.

The purchase bolsters the UPS fleet and adds to a record-breaking year for Boeing’s freighter sales. Air-cargo demand has surged during the pandemic amid a rise in time-sensitive online shopping that is expected to last even after Covid-19 subsides. More companies have turned to air transport lately as ocean-cargo routes suffer from delays.

Chicago-based Boeing’s shares rose 2% as of 9:34 a.m. in New York. Shares of Atlanta-based UPS gained less than 1%.