22-09-2022

Amazon Air’s total flight activity grew by just 3.8% between March and August 2022, far less than the 14.3% during the previous six months, with the slowdown reflecting the flattening trajectory of online sales, and softer demand for air cargo services in general, according to the latest study by Chicago-based DePaul University’s Chaddick Institute for Metropolitan Development.

However, the carrier has undergone “intensive expansion” at Cincinnati-Northern Kentucky International Airport (CVG) during the past six months and is also prioritizing growth in Europe, particularly in Leipzig and Milan, and partner-flight activity in Europe remains extensive, the research found.

Amazon Air has also added El Paso and Las Vegas to its flight network putting 73% of the US. mainland’s population within 100 miles of one of its airports compared to about 60% 18 months ago.

Cincinnati hub ‘take-off’

Amazon Air’s activity at CVG has increased from 25.6 to 43.9 flights daily, a 71% increase. When partner flights—takeoffs and landings on planes not branded as Amazon Air despite apparently being on Amazon-related missions—are included, CVG now regularly sees around 60 daily flights.

“Amazon’s CVG (hub) now more closely resembles FedEx and UPS hubs in Memphis and Louisville than it did in March, with a new cluster of “overnight flights” departing between midnight and 6 am. This scheduling, not evident in our previous review, positions Amazon for more next-day fulfilment from its vast warehouse network in Kentucky, Indiana, and Ohio. The timing of flights also facilitates plane-to-plane transfer. Many planes arrive in the late afternoon or early evening and depart after midnight,” the study noted.

‘New normal’

Amazon Air grew from 187.0 flights per day in March 2022 to 194.1 flights this month, a less than 4% increase based on the Institute’s review of seven representative days of operations. Its growth over the past year has been around 18.4%. Partner flights across the system appear to have stayed about the same.

“These trends indicate that Amazon has adjusted to a ‘new normal’ and taken decisive steps to adjust from overly optimistic estimates about the need for facilities and warehousing,” the researchers wrote.

Source: CEP-Research