UPS profit falls on lower volume

United Parcel Service (UPS) has reported a 28% decline in quarterly adjusted profit, with net income falling to $864 million.

The logistics giant attributed the drop to a strategic decision to scale back deliveries for its top client, Amazon, in favor of higher-margin shipments for the healthcare and technology sectors.

Despite the profit slump, the company’s results beat lowered analyst expectations, and UPS maintained its full-year revenue guidance.

However, executives warned that soaring fuel prices resulting from the ongoing war in Iran pose a significant risk to the company's planned return to growth in the second half of the year.