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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