UPS says it is raising rates on U.S. ground and air shipments and international services by an average of 4.9 percent starting Dec. 24.

Air-freight rates within and between the U.S. mainland, Puerto Rico and Canada will increase by a similar amount.

The Atlanta-based company said Wednesday that the rate increases will help pay for continuing expansion and improvements.

United Parcel Service Co. earned $2.5 billion in the first six months of the year, up 6 percent from the same period last year on a 7 percent rise in revenue.

UPS shares fell $1.15 to close at $118.55. They have gained 3.4 percent this year compared with a 14.2 percent rise in the Standard & Poor’s 500 index.

Author photo
The Associated Press
The AP is one of the largest and most trusted sources of independent newsgathering. AP is neither privately owned nor government-funded; instead, as a not-for-profit news cooperative owned by its American newspaper and broadcast members, it can maintain its single-minded focus on newsgathering and its commitment to the highest standards of objective, accurate journalism.