Dive Brief:
- Amazon revised its carrier agreement with Sun Country Airlines to operate eight additional Boeing 737 freighters on behalf of the e-commerce giant, according to a June 20 press release.
- The contract, implemented in 2019, has been extended through 2030 with options for additional extensions through 2037, bringing Sun Country’s Amazon air freight operations to 20 freighters.
- The first of the additional aircraft is expected to begin service in the first quarter of next year, with all eight slated to be operational by Q3 2025, according to the press release.
Dive Insight:
Amazon has been strategically adjusting its air cargo strategy, opting to simplify its U.S. network and optimize available cargo capacity.
Since March 2023, the e-commerce giant has re-sized its U.S. network, increasing some daily flights at hubs while reducing non-hub flight activity and ceasing service at six airports — many of which only serviced ATR-72 turboprops, according to the Chaddick Institute for Metropolitan Development’s report published in March. Aligning with that strategy, Amazon has ended use of all five of its turboprops, which only held 36% of the tonnage and 41% of the volume capacity of a 737 aircraft.
Amazon Air has instead been securing larger aircraft to grow capacity versus growing its overall fleet as it had during the COVID-19 pandemic. In the past year, Amazon secured three 767Fs and a single A330, increasing available capacity by nearly 5%, despite one fewer plane, per the report. Plus, with Amazon’s deal to secure 10 Hawaiian Airlines-operated A330 converted freighters, its available capacity is expected to grow 17%.
The e-commerce company has also been modifying its agreements with aircraft lessor Air Transport Services Group. Last year, ATSG reported that eight of its 12 Amazon-leased 767 aircraft agreements were set to expire between May and September 2023, with three aircraft to retire.
In May, however, the lessor announced an agreement to operate 10 767Fs on behalf of Amazon by the end of the year. During a Q1 2024 earnings call, ATSG CEO and Chairman Joe Hete noted that the agreement includes the “potential for Amazon to add up to 10 more aircraft beyond 2024.”
The additional 10 aircraft will bring the number of freighters ATSG operates for Amazon to 50.
Correction: A previous version of this story misidentified the freighter model Sun Country will operate. The airline will operate 737Fs.
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