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Beware of FedEx and UPS: Amazon is growing in its air fleet again

Amazon is adding a range of new cargo planes to its fleet to help it offer more of its own packages. It is another sign that Amazon is trying to reduce its dependence on other carriers. The company said on Friday it would lease 10 additional Boeing 767 cargo planes. Amazon could charter an additional 17 aircraft by 2025. It currently leases 40 aircraft. Amazon is expected to start using five new aircraft next year and the other five in 2020. This deal is another step in Amazon’s plan to expand its ability to deliver the same packages instead of relying on courier services, such as FedEx, in the United States. Amazon spent $ 18.6 billion on shipping costs in the first nine months of 2018, up 30% over the previous year. Morgan Stanley analyst Ravi Shanker said earlier this month that FedEx (FDX) and UPS (UPS) could lose 10 percent of their revenue to Amazon Air by 2025. Amazon (AMZN) Air Transport Services (ATSG). ), Which provides half the aircraft in the current Amazon fleet. Amazon is placing itself on a big stake in ATSG: it has the right to buy 19.9% ​​of the company, and its new deal gives it the right to double that potential stake. Amazon accounts for 29% of the company’s revenue this year.

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