Key Takeaways:
- Hawaiian Airlines will fly cargo for Amazon beginning in the fall of 2023.
- As part of the deal, Amazon will buy up to 15% of Hawaiian Air’s stock.
- Amazon will use Airbus A330 aircraft, which can hold more cargo than the current fleet of Boeing 767s.
WISCONSIN (CoinChapter.com) — Amazon has hired Hawaiian Airlines to fly Airbus A330 cargo planes starting in the fall of 2023. The Airbus aircraft will replace older jets as the carrier becomes the most recent passenger airline to fly for Amazon.
For Amazon, Hawaiian Air will fly an expected 10 Airbus A330-300 converted freight aircraft. After the announcement last Friday, the airline’s stock jumped 13% before settling at an 8.11% profit for the week.
The Federal Aviation Administration (FAA) has issued Hawaiian Airlines a certificate to allow the movement of Amazon’s cargo between airports and the retailer’s operations buildings. The agreement also leaves the door open for expanding more airplanes if Amazon’s business continues growth in that area.
Two other airlines have contracts with Amazon to fly cargo. One is cargo carrier Atlas Air, founded in 2001 and headquartered in New York. A second is the passenger airline Sun Country, founded in 1982 and based out of Minneapolis, Minnesota.
The Covid Pandemic Slowed Airline Passenger Travel, but Cargo Spiked
During the pandemic, the demand for airline travel plummeted.
However, the demand for cargo shipments increased. Now that passengers feel more comfortable again and return to airports, the results are more capacity entering the market, pushing down the cost of flying cargo.
Amazon recognized this and took advantage of the time to expand. As part of the agreement, Amazon will buy up to 15% of Hawaiian Airlines stock, exercisable after nine years.
In the announcement, Hawaiian Airlines CEO Peter Ingram stated:
“We are excited to help serve Amazon customers by providing additional air cargo capacity and logistics support. This recognizes our experience in providing safe and reliable operations, our incredible front-line team, and our shared focus on the customer.”
Positives For Amazon
The Airbus A330-300 aircraft will be a first for Amazon.
Presently, Amazon Air uses Boeing 767 aircraft. However, Airbus will be the newest and largest aircraft the retailer flies, allowing more customer packages for each flight – an obvious cost saver.
The A330 fuselage is 193 feet long, versus the Boeing 767’s 180 feet. The A330 is 57 feet high versus Boeing’s 51 feet. The Airbus flies faster at 635mph than Boeing’s 530mph!
Who Are Hawaiian Airlines?
Hawaiian Airlines began in 1929 and is Hawaii’s largest airline. They offer 260 departing and arriving flights daily with a current fleet of 61 aircraft.
Stock traders over the past month have been breathing a sigh of relief due to a 16.06% spike. YTD, the stock is down 21.15%. The agreement with Amazon renewed investor confidence and thrilled company executives.
