News

Amazon Air expands fleet to support Prime growth

Amazon

Amazon is leasing an additional 10 aircraft as it looks to support demand for Prime delivery.

The company expanded its partnership with Air Transport Services Group to add the new Boeing 767-300 aircraft, increasing its fleet to 50.

Amazon said the new planes would join its air cargo operation over the next two years.

Dave Clark, SVP of worldwide operations at Amazon, said: “Our customers love massive selection and fast delivery, and the Amazon Air capacity we are building enables Prime delivery speeds for customers from Seattle, Washington to Miami, Florida.

“By expanding the Amazon Air network through our partnership with ATSG we’re able to ensure we have the capacity to quickly and efficiently deliver packages to customers for years to come.”

Amazon launched its air freight division in 2016. It now operates out of 21 air gateways.

A story earlier this month saw Morgan Stanley analyst Ravi Shanker claim that Amazon’s air freight business could sap revenue from FedEx and UPS, which currently handle up to 50% of Amazon’s package volumes.

In an investor note, Shanker claimed Amazon Air could mean 2% of lost revenue for UPS and FedEx in 2018, rising to 10% in 2025.

However, this week FedEx CEO Fred Smith claimed that the idea Amazon could disrupt the company was “fantastical”.