Sun Country updates delivery timeline for Amazon Air’s 737-800Fs

Amazon Air B737-800F

US carrier Sun Country Airlines is sticking with a previously announced plan to next year take delivery of eight additional Boeing 737-800 freighters to fly on behalf of Amazon Air, but has pushed back the expected completion of deliveries.

The deal for eight more 737-800Fs between the two airlines was announced in June, although the expected timeline of completion has shifted slightly from the third quarter of 2025 to the fourth quarter.

During the Minneapolis-based carrier’s third-quarter earnings call on October 31, chief executive Jude Bricker said that the first 737F is expected to be delivered in late March, with the eighth due in the fourth quarter of next year, while the airline had initially reported in June that all eight aircraft were expected to be operational by the third quarter of 2025.

“So, it’s a rapid ramp-up during the summer months of 2025, and by the end of next year all the aircraft should be operating and the rate changes should be fully in place,” Bricker said.

The additional airlines were agreed in June as part of Sun Country’s amended air transport services agreement with Amazon, under which Sun Country will now operate a total of 20 737-800Fs on behalf of the e-commerce giant.

Meanwhile, the length of the CMI agreement has been extended by five years to 2030 with a series of three options that if exercised would extend the deal through to 2037.

Sun Country first started operating aircraft for Amazon in May 2020 after the two companies struck a 10-aircraft sublease deal, which was later extended by two more aircraft.

In addition to its deal with Sun Country, Amazon extended its partnership with ATSG in May, with ATSG confirming it would operate an additional 10 Boeing 767 freighters on behalf of Amazon.

In October 2022, Hawaiian also agreed to operate “at least” 10 Airbus A330-300 freighters for Amazon. Hawaiian anticipates operating six A330P2Fs by the end of this year and taking delivery of the remaining four throughout 2025. 

However, in May, Atlas Air said it was backing out of operating 737 freighter aircraft on behalf of Amazon.

The airline said it would cease flying for Amazon in mid-2025 and would aim to focus on investing in widebody operations and e-commerce opportunities.

There has also been a number of changes to Amazon Air’s operations this year.

Recently, Amazon Air confirmed that it is now selling cargo capacity on its aircraft to third parties, including ad hoc and charter services.

At this stage, it is not clear if the move is a long-term strategy to compete with the likes of FedEx and UPS or a measure to fill spare capacity that it cannot fill with its own cargo.

The carrier has faced some challenges to growth. Last year, it slowed the expansion of its fleet as it adjusted to lower volumes following the slowdown in e-commerce growth after the surge seen during the Covid pandemic.

It has also faced the challenge of competing with Chinese e-commerce giants such as Temu and Shien that fly packages directly to consumers from Asia without the need to manage a network of warehouses to store stock.

Amazon Air expanded its air cargo capacity last year through the addition of larger aircraft, but also simplified its network by flying to fewer airports and conducted fewer flights, according to a report issued in March by the Chaddick Institute.

The changes have seen the carrier utilise larger aircraft – such as  A330-300 operated by Hawaiian and more 767s operated by ATSG – and consolidate operations at fewer hubs, creating more of a hub and spoke network, matching the likes of UPS and FedEx.

In the process, the percentage of the fleet comprised of 737 or smaller planes has fallen from 38% to 33% over the past year (as of March).

The carrier also stopped using ATR-72 turboprops over the last year.

Amazon places more freighters with Sun Country Airlines

Amazon Air takes on cargo carriers with launch of sales to third parties

 

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Rebecca Jeffrey

Rebecca Jeffrey
New to aviation journalism, I joined Air Cargo News in late 2021 as deputy editor. I previously worked for Mercator Media’s six maritime sector magazines as a reporter, heading up news for Port Strategy. Prior to this, I was editor for Recruitment International (now TALiNT International). Contact me on: [email protected]