UPS · 10-Q · 2026Q2 · Full report

Middle East Conflict Impact

UNITED PARCEL SERVICE INC · 2026-08-05 · Importance 46 · Surprise 42

The Middle East conflict increased fuel, charter, aircraft, and network-disruption costs during the second quarter and first half of 2026. Domestic fuel surcharge revenue increased approximately $575 million in the quarter and $721 million year to date, while international fuel surcharge revenue increased $429 million and $452 million, respectively. Consolidated fuel expense increased $639 million in the quarter and $664 million year to date, and International Package integrated air and ground network costs increased $482 million in the quarter and $602 million year to date. UPS also incurred higher charter utilization and third-party aircraft costs as it aligned its network with conflict-related disruptions.