Bonn, Germany - DHL, the worldwide courier and parcel company owned by Deutsche Post of Germany, said Wednesday it is to give up part of its loss-making business in the United States, transferring the air-cargo operations to long-time rival UPS.

The move, announced in Bonn after a Deutsche Post board meeting, would save the German-based group 1 billion euros annually.

The announcement said UPS and DHL would sign a contract transferring DHL Express "airlift" functions within North America to UPS. This would be the carrier for both US consignments and international ones.

DHL's yellow air freighters, which fly large volumes of mail around the US, are expected to vanish from US skies, but DHL vans and offices on the ground would continue as before. DHL would continue to offer US customers the same services.

Post said it expected a loss in the current year of 1.3 billion dollars at DHL Express in the US. (dpa)