Cargo airline Amazon Air has ended its relationship with regional carrier Silver Airways, which flew five ATR-72 freighters on behalf of Amazon.
Amazon Air ends Silver Airways partnership
Silver Airways will not operate flights on behalf of Amazon lower than two years after partnering up with the multinational company. As first reported by CargoFacts, Amazon has ended its contract with the Florida-based regional airline effective immediately.
Amazon told FreightWaves that its decision to finish the partnership wouldn’t impact its customers. The airline said,
Photo: Amazon Air
Amazon Air still maintains partnerships with a handful of other airlines, including ABX Air, Air Transport International, ASL Airlines, Atlas Air, CargoJet Airways and Sun Country – moreover, Hawaiian Airlines will start flying 10 Airbus A330-300 passenger-to-freighter (P2F) planes on behalf of Amazon starting within the fourth quarter. The cargo carrier currently has almost 90 aircraft at its disposal, including Boeing 737s and Boeing 767s.
Air freight growth slowdown
The air cargo industry experienced a boom over the COVID pandemic – not only were consumers ordering more goods online on account of lockdowns, but passenger flights worldwide were significantly reduced, which meant less belly cargo space.
Photo: Ian Dewar Photography | Shutterstock
In consequence, demand for air freight skyrocketed. Nevertheless, with passenger operations now reaching – or in some cases even exceeding – pre-pandemic levels, more belly cargo space has opened up. Amazon Air continues to be barely increasing its flight operations, however the rate of growth seen within the last couple of years has slowed down considerably.
The air cargo market is predicted to proceed growing over the following half-decade – in line with Technavio, it is going to see a compound annual growth rate (CAGR) of 5.32% between 2022 and 2027, driven by e-commerce demand.
What do you think that of Amazon Air’s decision to finish its agreement with Silver Airways? Tell us your insights within the comments.