Amazon network grows amid layoffs

In 2022, Amazon once again saw its shipping costs climb to $83.5 billion, an increase of 8.9% from 2021. Amazon posted operating losses in both its North American and European segments, of $2.8 billion and $7.7, respectively. In addition, 2022 saw Amazon’s worldwide e-commerce sales fall by $2.7 billion or -0.3% when compared with 2021.

In its Q4 earnings announcement, Amazon applauded its improvements to same-day delivery in major metropolitan areas in the United States, such as Los Angeles, San Francisco, Phoenix, Sacramento, Calif. and Portland, Ore., where customers can now receive hundreds of thousands of items within hours. In the EU, same-day delivery is now available in Belgium. Amazon’s focus on the customer experience and the drive to get products in its customers’ hands quicker will continue to drive up transportation costs.

Below we have created separate maps outlining Amazon Networks in the US, Canada, Europe, and India.

Source: Cargo Facts analysis of Flightradar24 data. Indian Air Network

Earlier this year, there was discussion of the new Amazon network in India , based on training and certification flights that were trackable. Cargo Facts Consulting speculated that Amazon’s planned network in India would likely include four destinations: Indira Gandhi International Airport (DEL), Kempegowda International Airport Bengaluru (BLR), Jaipur International Airport (JAI) and Rajiv Gandhi International Airport (HYD).

We were close; however, when revenue operations started on Jan. 23, Chhatrapati Shivaji Maharaj International Airport (BOM) replaced JAI in the network. At the time, we knew that VT-AAZ would enter dedicated service for Amazon but were unsure about another Quikjet 737-800BCF (MSN 28382). That unit has since been registered in India as VT-BAZ and, as previously mentioned , wears the livery of Quikjet rather than Amazon.

The decision not to have VT-BAZ wear the Amazon livery led us to question whether it would operate exclusively for Amazon. However in an interview with Reuters , Sarah Rhoads, vice president, Amazon Global Air, indicated that Amazon has exclusive use of the aircraft. India is Amazon's third-largest market behind the U.S. and Europe, and the e-commerce giant plans to expand its fleet in India to six aircraft by the end of the year. This expansion has been met with questions, as it seems to buck cost-saving measures, including the layoffs of up to 18,000 employees, that are being witnessed in other business segments. Amazon Chief Executive Andy Jassy has indicated that these cost-saving measures will not impact the long-term strategy of the company.

US Air network

It has been some time since we have shared an update on Amazon's U.S. network. For our analysis, we reviewed Flightradar24 data between March 25 and April 7, a time frame selected to capture a glimpse of the network nearing the first quarter. As is the case whenever we monitor networks, we like to do so over a two-week period to ensure that we are getting a clear picture and can eliminate one-off segments or charters.

During our review, we saw Amazon make significant changes to its U.S. network, these changes occurred on March 28 and 29. One of the biggest changes we noted is that it appears that Silver Airways suspended operations at Wichita Dwight D. Eisenhower National Airport (ICT).

On March 28, Silver Airways flight 3M3990 departed ICT and we have not seen any activity in or out of ICT, by Silver Airways or any of Amazon's other carriers. This suspension comes a little more than a year after Amazon launched air service to Wichita . We hope that this suspension is short-lived and that service will resume soon.

As the network contracts in one area, the expansion continues in others. Sources believe that Shreveport Regional Airport (SHV) is the next destination to be added. A fulfillment center in Shreveport was originally announced in May 2021 , but due to multiple construction delays, it is now expected to open in the fall of 2023.

We expect flights to commence when the center is operational. We have also heard rumors that Amazon has already launched service to San Jose Mineta International Airport (SJC), however, our analysis did not show any flights to or from the airport, and we have not seen any official communication from Amazon or SJC.

Additions to service that we are able to confirm are as follows: Nov. 3, 2022 — Amazon added daily service to Mobile International Airport (BFM) utilizing a Silver Airways ATR72. Amazon operates one round-trip flight between Perot Field Fort Worth Alliance Airport (AFW) and BFM. Amazon Air has leased a 16,000-square-foot area to sort and load Amazon packages at BFM airport. Nov. 18, 2022 — Amazon added Manchester-Boston Regional Airport (MHT) to the network. Initially, we saw one daily round trip between Amazon's hub at CVG and MHT, but Amazon had already elected to add a second flight arriving from AFW and departing for CVG. Dec. 13, 2022 — Amazon added daily service to Boise Airport, the route is operated by Atlas Air using 737-800F aircraft. Amazon will operate out of 31,000 square feet of warehouse space at the airport . Amazon fleet outlook

On Oct. 21, 2022, Hawaiian Airlines signed an agreement to operate and maintain an initial fleet of 10 Airbus A330-300 freighters. These freighters will begin to enter service in late 2023.

An update on the four ex-Delta aircraft: N571AZ (MSN 30388) was converted by IAI in TLV and then ferried to Salina (SLN) via Bangor (BGR) on March 20. It will enter service shortly with ATI. N607AZ (MSN 30573) was ferried from MEX to CVG on April 12 after its conversion was completed. Later that same morning, the aircraft was repositioned from CVG to ILN and is expected to enter service within the coming days. N643AZ (MSN 32776) completed test flights in MEX on April 9-11 and will likely head north to the U.S. in the coming days. N619AZ (MSN 30594) is still undergoing conversion in MEX, where it arrived on Aug. 3, 2022.

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