Amazon’s existing air fleet runs approximately 100 flights a day and consists of 42 aircraft, all of which are converted 737s and 767s, leased from other organizations including Atlas.
For some time, the company has set its sights on reducing its dependency on UPS and FedEx and subsequently lower its supply chain costs. But with UPS and FedEx boasting 265 and 396 planes respectively, Amazon’s air fleet currently lags behind its closest competitors.
However, the company looks set to benefit enormously from the fact that aircraft values will likely be depressed for years to come and cargo yields are increasing.
A new report titled Insights into Amazon Air – 2020’s Transportation Juggernaut predicts Amazon Air will quintuple its cargo fleet to 200 aircraft by 2028. Amazon’s expansion plans include building a $1.5 billion facility in Cincinnati, Ohio, which will accommodate 100 planes and 200 flights per day.