Air freight rates have risen sharply in recent years due to port congestion and the need for fast delivery. Accordingly, the Baltic air freight index has fallen by more than 33% as of January 30, compared with the same period last year. The International Air Transport Association also said last month that air cargo demand in November 2022 fell by nearly 14%, while capacity fell by 1.9%.

With the above situation, Amazon CEO Andy Jassy decided to cut operating costs, including reducing more than 18,000 jobs, halting warehouse expansion and closing some projects.

Earlier, during the pandemic, Amazon built its logistics network at breakneck speed, when the demand for e-commerce increased. From there, rising inflation and slowing consumer spending forced Amazon to downsize. According to Bloomberg, the company has considered selling the cargo plane space to other airlines.

Amazon may not even renew its lease on five Boeing 767-200 freighters this year, according to ATSG. “As part of our annual plan, we regularly reduce our flight schedule at this time. The reason is to accommodate post-holiday fluctuations and aircraft maintenance,” an Amazon spokesperson said.

In October 2022, Amazon hired Hawaiian Airlines to carry cargo and said it would decommission some older planes. Through Amazon Air, the company has built an evolving airline network to more tightly control the delivery process and ensure faster delivery. In addition to Amazon and DHL, the shipping company FedEx has also announced information to cut costs through reducing flights, cutting some jobs.