NEW YORK (TheStreet) -- United Parcel Services (UPS) - Get United Parcel Service, Inc. Class B Report stock is declining 1.06% to $99.55 in afternoon trading on Wednesday after e-commerce giant Amazon.com (AMZN) agreed to lease 20 freight aircrafts from Air Transport Services Group (ATSG).
Amazon's plan moves its business away traditional shipping companies, such as UPS and FedEx Corp. (FDX), and towards an in-house air cargo network.
"This is an incremental negative for FDX and UPS as it will likely remove some higher yielding express freight and parcel volume from each of the respective networks," RBC Capital Markets analysts said in a note, according to Reuters.
UPS is the top package delivery company in the world, operating about 240 large aircrafts, Reuters adds.
Earlier today, the Atlanta-based company announced plans to invest $80 million into expanding its package sorting and delivery facility in Herne, Germany.
Separately, UPS has a "buy" rating and a letter grade of A- at TheStreet Ratings because of the company's net income, revenue and earnings per share growth, and notable return on equity.
You can view the full analysis from the report here: UPS
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