(Reuters) - -United Parcel Service ( UPS ) on Thursday forecast 2025 revenue below Wall Street estimates, as gains from cost cuts were offset by customers opting for cheaper, slower ground-based deliveries from more profitable air-based services.

Shares of the world's largest package delivery fell more than 5% early in the trading session.

It forecast full-year revenue of $89 billion, compared with analysts' average estimate of $94.88 billion, according to LSEG data.

UPS and rival FedEx have been cutting costs since customers switched to slower, cheaper deliveries in the wake of the early pandemic's e-commerce boom.

Atlanta-based UPS aset its full-year forecast for consolidated operating margin to be 10.8%.

(Reporting by Abhinav Parmar in Bengaluru and Lisa Baertlein in Los Angeles; Editing by Savio D'Souza and Arun Koyyur)