Global e-commerce giant Amazon.com is starting to proactively scout for customers to help fill its cargo aircraft amid a worldwide slowdown in air freight demand. The US-based company has around 100 aircraft deployed across multiple cargo carriers and is looking to keep them fully loaded and flying.
Per Bloomberg, Amazon is now hiring executives with experience in selling surplus cargo space and generating new business. Measured by revenue, the global air cargo market is expected to decline around 25% in 2023 to approximately USD150 billion. However, the 2023 forecast still betters the pre-pandemic 2019 global revenue figure by around 33%. What's causing Amazon (and other express air cargo airlines) a financial headache is the comedown from the pandemic air cargo highs.
One strategy Amazon is reportedly keen to tap into is the import of perishable and seasonal products into the United States on return flights. Cited examples include flowers from South America for Valentine's Day and seafood from markets like Canada and New Zealand. Bloomberg also noted that Amazon was likely to not renew some aircraft leases with ATI - Air Transport International (8C, Wilmington Air Park), a large operator of aircraft for the company, but ATI is also about to redeploy four B767-300ER(BDSF)s into South America on behalf of Amazon, suggesting that Amazon is keen to stimulate new business and new markets rather than simply under-utilising aircraft.
According to the Loadstar news site, four ATI B767-300(ERBDSF)s will start flying from Miami International to Bogotá, Quito International, and Lima International from January 21 for Amazon.com. ATI is a Wilmington, Ohio-headquartered passenger and cargo airline with an FAA Part 121 air carrier certificate. According to ch-aviation fleets data, ATI flies 49 aircraft, including four B757-200(C)s, two B767-200(BDSF)s, five B767-200(SF)s, three B767-300ER(BCF)s, and thirty-five B767-300(ERBDSF)s, with almost all the B767-300(ERBDSF)s contracted to fly for Amazon.com.
Until now, Amazon's air cargo services have largely bypassed South America, however, the e-commerce giant is reportedly re-evaluating markets there and looking at destinations beyond Quito, Lima, and Bogotá. Further flights would follow Amazon reaching agreements with businesses on both American continents to begin using the freighter space they make available. ch-aviation has approached ATI - Air Transport International and Amazon Prime for comment.
Other operators of aircraft for Amazon include Atlas Air (5Y, New York JFK), Cargojet Airways (W8, Hamilton, ON), ASL Airlines Ireland (5H, Dublin International), Sun Country Airlines (SY, Minneapolis St. Paul International), Quikjet Airlines (QO, Bengaluru International), and Silver Airways (3M, Fort Lauderdale International). In October, Hawaiian Airlines (HA, Honolulu) signed an agreement to operate and maintain a fleet of ten A330-300(P2F)s on behalf of Amazon under an eight-year contract with the first aircraft arriving in 2023. While Amazon has spent around USD1.5 billion building a major hub at Cincinnati International, most of its circa 200 daily flights use B767 capable regional airports located close to its 100-plus warehouses situated around the United States.
