Amazon’s Air Network Transformation Unveiled: Reduce Flights, Boost Capacity!
Amazon is making significant changes to its air network, following a trend similar to integrated express carriers. The company is reducing the number of flights but increasing capacity by utilizing larger aircraft and focusing on hubs in its core market.
In Europe, Amazon has decreased flights by over a third. The latest report from the Chaddick Institute at DePaul University reveals that Amazon’s flight network has shrunk by 1.8% since last March, but capacity has increased by 4.9% with the addition of three B767Fs and one A330F.
The company no longer uses AT-72 turboprops, resulting in a decrease in their aircraft fleet count by one. The shift in their US air network has led to a reduction of airports served from 53 to 47, with services being terminated to six airports including Tampa, Des Moines, and Omaha.
Joe Schwieterman, the director of Chaddick, highlighted that Amazon has transitioned traffic from air to ground and has reduced point-to-point flying in favor of rapid fulfillment and overnight parcel transport. Their US network is now more focused on hubs, with over 80% of domestic flights involving the five largest hubs, particularly in the Ohio Valley region.
Daily flight operations at Cincinnati have increased, and Amazon is set to receive nine more converted A330 freighters, which will further strengthen the role of its hubs. Despite these changes, Amazon has not disclosed its reliance on third-party lift or how the evolving e-commerce model is impacting its air strategy.
While Amazon has expanded its capacity in North America and other regions, its European flying has declined. However, the authors of the report predict a rebound in Amazon’s European flying in the coming months, as well as measured expansion in the US and potential entry into developing countries like India.
Overall, Amazon’s air network transformation reflects a strategic shift towards larger aircraft, hub-focused operations, and adapting to changes in demand and cost challenges faced by the industry.