Amazon Weighs Disposing Of Excess Air Cargo Space On Pandemic Recovery

Amazon.Com, Inc AMZN tried to dispose of excess space on its cargo planes to adjust from a rapid pandemic-era expansion to a slowdown in online growth.
Lately, Amazon, which has a fleet of about 100 planes in the U.S. and Europe, has hired executives with experience in marketing cargo space for airlines, the Economic Times reports.
Amazon's possibilities include filling empty jets returning from Hawaii and Alaska with pineapples and salmon.
The long-term plan for Amazon Air remained intact despite the current turmoil.
The pressure to make money from unused space aboard its jets mounted as it looked to boost profits in a period of slower revenue growth.
Amazon launched the air cargo service in 2016, prompting speculation that it would ultimately create an overnight delivery network to rival United Parcel Service, Inc UPS and FedEx Corp FDX.
Demand for air cargo has cooled this year and will likely tail off again in 2023.
Amazon plans to trim its fleet by not renewing some leases for aircraft with Air Transport Services Group.
FedEx on December 20 unveiled plans to cut $3.7 billion in expenses next year, including using digital tools to rebalance flights between company-owned jets and lifts from third-party operators.
Amazon offered space on its planes and charter flights.
The effort is the latest maneuver to address slowing online sales and a fragile economy that could be on the brink of recession, including subletting excess warehouse space and eliminating an estimated 10,000 jobs.
Price Action: AMZN shares are trading higher by 0.47% at $85.65 premarket on the last check Tuesday.

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