The airline business could also be reeling from the coronavirus pandemic, however Amazon‘s air cargo enterprise has quickly accelerated in latest months.
Between Could and July, Amazon added 9 planes to its Amazon Air fleet, “essentially the most it has added over a three-month span since its inception,” mentioned the report issued Thursday by DePaul College’s Chaddick Institute for Metropolitan Improvement.
“Amazon Air expanded quickly throughout summer season 2020, a interval in any other case marked by sharp year-over-year declines in air-cargo visitors,” the report states.
Amazon’s air fleet, launched in 2016, is a crucial a part of its push to offer one- and two-day supply. The corporate nonetheless depends on outdoors carriers for a major share of its deliveries, nevertheless it has gradually moved extra of its logistics operations in-house, permitting it to raised management prices and supply speeds. Analysts believe Amazon’s air fleet, mixed with its huge community of airplanes, truck trailers and vans, might in the future place it to rival UPS and FedEx.
The coronavirus pandemic has generated much more stress on Amazon to make sure quick supply, because it noticed a surge in on-line orders from stuck-at-home consumers who turned to the corporate for important items and groceries, together with different merchandise like workplace provides and electronics.
Whereas its fleet has grown since Could, Amazon Air nonetheless stays smaller than its rivals, together with FedEx, which operates 463 planes, UPS’ fleet of 275 planes and DHL’s 77 planes, DePaul researchers said in a separate report printed in Could.
Amazon’s $1.5 billion air hub in Northern Kentucky might assist give it an edge, the report mentioned. The hub, scheduled to open in 2021, is designed to have capability for 100 Amazon-branded planes and deal with an estimated 200 flights per day.
“The large funding being made in a big hub at Cincinnati/Northern Kentucky Worldwide Airport, nevertheless, might change every little thing,” the report mentioned. “This hub seems to be the lynchpin to Amazon’s efforts to develop a complete array of home supply providers throughout the USA.”