Amazon explores cargo charter service with Sun Country Airlines

FreightWaves11-01

A Boeing 737-800 cargo jet operated by Sun Country Airlines on behalf of Amazon Air lands at Alliance Airport in Fort Worth, Texas. (Photo: Jim Allen/FreightWaves) Sun Country Airlines is in ...

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(Photo: Jim Allen/FreightWaves) \n \n\nSun Country Airlines is in ...</p>\n\n<a href=\"https://finance.yahoo.com/news/amazon-explores-cargo-charter-sun-182559412.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IE00B19Z8W00.USD","symbol_name":"FTGF CLEARBRIDGE US LARGE CAP GROWTH \"A\" INC","start_time":0,"source_url":"https://finance.yahoo.com/news/amazon-explores-cargo-charter-sun-182559412.html","article_id":"2480063993","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/0qZfBfHu.jrbNGsLhhFMvw--~B/aD02NzU7dz0xMjAwO2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/freightwaves_373/d5d70187c9e5e50ee68f0566040ead27"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2480063993","pubTimestamp":1730399159,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"A Boeing 737-800 cargo jet operated by Sun Country Airlines on behalf of Amazon Air lands at Alliance Airport in Fort Worth, Texas. . Sun Country Airlines is in discussions with Amazon about expanding their air cargo partnership to include special charter flights for dedicated customers, CEO Jude Bricker said on a media call Thursday to discuss the carrier’s financial results.Sun Country , a hybrid low-cost carrier, operates 12 Boeing 737-800 converted freighters on a daily basis within Amazon’s scheduled domestic air network to support next-day and two-day package delivery.Amazon’s  air logistics unit recently unveiled a for-profit line of business that sells excess cargo capacity on its aircraft to 3PLs and other businesses seeking to move general cargo by air. Among the options available to shippers is renting an entire aircraft when it isn’t busy flying for Amazon. Freight forwarding powerhouse Kuehne+Nagel last week said it is using the Amazon Air Cargo service to relay e-commerce","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"IE00B19Z8W00.USD":"FTGF CLEARBRIDGE US LARGE CAP GROWTH \"A\" INC","LU0077335932.USD":"FIDELITY AMERICAN GROWTH \"A\" INC","IE00B7KXQ091.USD":"Janus Henderson Balanced A Inc USD","IE00B4JS1V06.HKD":"JANUS HENDERSON BALANCED \"A2\" (HKD) ACC","BK4516":"特朗普概念","IE00B775SV38.USD":"NEUBERGER BERMAN US MULTICAP OPPORTUNITIES \"A\" (USD) ACC","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","BK4564":"太空概念","BK4554":"元宇宙及AR概念","IE0004091025.USD":"BNY MELLON GLOBAL OPPORTUNITIES \"B\" (USD) ACC","BK4532":"文艺复兴科技持仓","BK4592":"伊斯兰概念","LU1429558221.USD":"Natixis Loomis Sayles US Growth Equity RA USD","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","IE00B19Z9505.USD":"美盛-美国大盘成长股A Acc","IE00BJJMRX11.SGD":"Janus Henderson Balanced A Acc SGD","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","LU0072462426.USD":"贝莱德全球配置 A2","IE00BJTD4V19.USD":"NEUBERGER BERMAN US LONG SHORT EQUITY \"A1\" (USD) ACC","BK4008":"航空公司","AMZN":"亚马逊","GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc","LU0079474960.USD":"联博美国增长基金A","LU0056508442.USD":"贝莱德世界科技基金A2","BK4533":"AQR资本管理(全球第二大对冲基金)","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","IE00BMPRXR70.SGD":"Neuberger Berman 5G Connectivity A Acc SGD-H","IE00BKDWB100.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5H\" (SGDHDG) ACC","IE00BJLML261.HKD":"HSBC GLOBAL EQUITY INDEX \"HCH\" (HKD) ACC","SNCY":"Sun Country Airlines Holdings, Inc.","BK4524":"宅经济概念","BK4535":"淡马锡持仓","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","BK4538":"云计算","BK4527":"明星科技股","LU0096362180.USD":"CT (LUX) I GLOBAL FOCUS \"DU\" (USD)","BK4550":"红杉资本持仓","BK4588":"碎股","IE0005OL40V9.USD":"JANUS HENDERSON BALANCED \"A6M\" (USD) INC","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","LU0011850046.USD":"贝莱德全球长线股票 A2 USD","BK4503":"景林资产持仓","CRWD":"CrowdStrike Holdings, Inc.","LU0061474705.USD":"THREADNEEDLE (LUX) GLOBAL DYNAMIC REAL RETURN \"AU\" (USD) ACC","BK4551":"寇图资本持仓","IE00B19Z8X17.USD":"FTGF CLEARBRIDGE US LARGE CAP GROWTH  \"AG\" (USD) ACC","LU2326559502.SGD":"Natixis Loomis Sayles US Growth Equity P/A SGD-H","IE00B1BXHZ80.USD":"Legg Mason ClearBridge - US Appreciation A Acc USD"},"translate_title":"亚马逊与太阳乡村航空探索货运包机服务","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SNCY":1,"AMZN":1,"CRWD":0.6},"content_text":"A Boeing 737-800 cargo jet operated by Sun Country Airlines on behalf of Amazon Air lands at Alliance Airport in Fort Worth, Texas. (Photo: Jim Allen/FreightWaves) \n \n\nSun Country Airlines is in discussions with Amazon about expanding their air cargo partnership to include special charter flights for dedicated customers, CEO Jude Bricker said on a media call Thursday to discuss the carrier’s financial results.\nSun Country (NASDAQ: SNCY), a hybrid low-cost carrier, operates 12 Boeing 737-800 converted freighters on a daily basis within Amazon’s scheduled domestic air network to support next-day and two-day package delivery.\nAmazon’s (NASDAQ: AMZN) air logistics unit recently unveiled a for-profit line of business that sells excess cargo capacity on its aircraft to 3PLs and other businesses seeking to move general cargo by air. Among the options available to shippers is renting an entire aircraft when it isn’t busy flying for Amazon. Freight forwarding powerhouse Kuehne+Nagel last week said it is using the Amazon Air Cargo service to relay e-commerce shipments from China to the United States.\nMost of Amazon’s fleet, which numbers about 100 aircraft, consists of widebody Boeing 767 converted freighters. Amazon also has six Airbus A330-300s, which are slightly larger than the 767s.\nBricker’s comment indicates that Amazon intends to utilize the narrowbody fleet for charter operations as well.\nSun Country executives have long said the Amazon cargo business provides stable revenue growth and a buffer against fluctuations in the passenger segment. They project cargo’s share of total revenue to double to 20% in the second half of 2025.\nQ3 cargo performance\nSun Country Airline’s cargo segment generated its first positive adjusted pre-tax profit margin since the first quarter of 2022. A rate bump in its parcel transportation contract with Amazon helped the company grow cargo revenue 12%, to $29.2 million, year over year in the third quarter, more than offsetting a decrease in flight hours from the prior quarter.\nTotal cargo flight duration in the third quarter declined 3.6% due to scheduled heavy maintenance for some aircraft and the impact of hurricanes Helene and Milton on cargo operations in the Southeast, according to the Minneapolis-based carrier’s earnings report on Wednesday. Bricker said Amazon had to cancel many flights to its Lakeland, Florida, hub because of the storms.\nSun Country’s other primary operations centers for Amazon are the superhub at Cincinnati/Northern Kentucky International Airport and Alliance Field in Fort Worth, Texas. \nSun Country’s cargo revenue per trip grew by 16% from the same period in 2023, while margins were up 8%, thanks to an annual rate escalation on the Amazon contract that went into effect in mid-December and the beginning of new Amazon contract rates that were executed in June. Cargo revenue per trip increased 7% from the prior quarter.\nSun Country has a six-year contract with Amazon that lasts until May 2026 and can be renewed for two to four years at Amazon’s option. The cargo fleet will grow to 20 aircraft next year when Amazon delivers eight more leased aircraft for Sun Country to fly in its domestic air logistics network under a new transportation services agreement that runs until October 2030. \nThe retail giant is reassigning the aircraft from all-cargo carrier Atlas Air to Sun Country. Chief Financial Officer Dave Davis said in the earnings release that the first aircraft is expected to enter service in late March or early April. Previous guidance projected the first arrival would happen sometime in March. All eight aircraft are expected to be in operation by the end of the third quarter in 2025.\nThe revised Amazon contract rates will continue to escalate as the airline receives additional aircraft and will not be in full effect until the second half of 2025.\nCargo operating income improved from a $609 million loss last year to a positive $2.3 million in the third quarter, which Sun Country attributed to the higher Amazon payments and scheduling efficiency improvements among the cargo, charter and scheduled passenger segments, which offset contractual pay increases for pilots.\nCargo revenue for the first nine months of the year was up 5.5% to $78.6 million.\nSun Country management previously planned to suspend scheduled passenger service in some markets next year to ensure a smooth expansion of the Amazon cargo fleet, but Davis told analysts on a conference call Thursday that the schedule may only shrink about 5% instead of 10% because pilot availability has improved.\nOverall, Sun Country’s net income fell 69% to $2.3 million, the company’s ninth consecutive quarter of profitability. The airline achieved record third-quarter revenue of $249 million, roughly flat from a year ago, despite the impact of the CrowdStrike IT outage and hurricanes. Revenue for the passenger segment, which includes scheduled charter flying, fell 3%.\nManagement said passenger booking activity is strong through the winter season and fares are rising after the domestic industry weeded out some capacity.\nThe airline continues to contain costs better than other carriers, with cost per available seat mile up 1.9%. While fuel costs are down, landing fees and airport rent increased 14.5% due to the expiration of COVID assistance that airports had used to limit rate increases. The company continues to produce free cash flow and bring down debt levels.\nClick here for more FreightWaves/American Shipper stories by Eric Kulisch.\nRELATED STORIES:\nAmazon airline sells excess cargo capacity to third-party shippers\nAmazon flying to generate 20% of Sun Country Airlines’ revenue\nThe post Amazon explores cargo charter service with Sun Country Airlines appeared first on FreightWaves.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"Company Corporation","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2480063993"}