Air Transport Services Group says its two main cargo customers, Amazon.com and DHL Express, are "adjusting their ground and air distribution and fulfilment networks" and that it will therefore operate fewer flights on their behalf. This year alone, it may retire up to eight B767 freighters operated on behalf of Amazon.
The holding said in a fleet update statement that leases on the eight B767-200(F)s are due to expire between May and September 2023. The jets are owned by ATSG's in-house lessor Cargo Aircraft Management which leases them to Amazon.com. ATSG's ABX Air and ATI - Air Transport International subsidiaries, in turn, operate them for the online retailer under a CMI deal.
"CAM expects to retire at least three of the eight due to airframe cycle limitations and utilize the engines removed to support other 767-200 lease customers. CAM expects to re-lease and/or sell the remaining five B767-200 freighters which Amazon may not extend," the holding said.
The ch-aviation fleets module shows that Cargo Aircraft Management leases ten B767-200(SF)s and three B767-200(BDSF)s to Amazon.com. Six are operated by ABX Air and the other seven by ATI. ATSG said that except for the eight due to expire this year, the remainder are currently signed through 2024.
ATI also operates five B767-300ER(BDSF)s owned by Amazon.com, as well as 28 units of the type and two B767-300ER(BCF)s owned by CAM and leased by the e-commerce giant. The carrier's fleet operated on behalf of Amazon.com also includes one -300(ERBCF) and one -300(ERBDSF) leased from Titan Aviation Holdings. ATSG's airlines are the largest operators of Amazon.com's fleet by the number of aircraft globally.
Amazon.com denied it was downsizing its operations in response to the current economic environment.
"The assertion that we're scaling back Amazon Air flights due to lower demand overall and slow economic growth is false. As part of our annual planning, we routinely reduce our flight schedules at this time of year to account for the typical post-holiday fluctuations and for aircraft maintenance," spokesperson said in a statement to ch-aviation.
Amazon.com recently posted an annual net loss for 2022 of USD2.7 billion - a stark reversal from a USD33.4 billion net profit in 2021 - and said its operating income in the first quarter of 2023 could be between zero and USD4 billion due to recessionary concerns.
In turn, ATSG's operations for DHL Express include four B767-200(SF)s, two -200(BDSF)s, and fourteen -300(ERBDSF)s, all of them operated by ABX Air.
Editorial Comment: The article updates with Amazon's statement. - 10Feb2023 - 23:15 UTC