Amazon announced that it had purchased four of WestJet’s 767-300ERs for shipping operations. The planes left WestJet’s fleet in March 2020 and are currently undergoing conversion to freighter aircraft. Amazon also bought seven 767-300ERs from Delta as it looks to expand its fleet.
Amazon is looking to rapidly grow its air freight operations in the next two years. Photo: Vincenzo Pace | JFKJets.com
Adding 767s
We’ve previously covered Amazon’s growing 767 fleet, including purchases from Delta and WestJet. However, this week showed us the scale of Amazon’s plans for global shipping over the next two years. The Seattle-based online giant will add 11 widebodies to its fleet in the next two years, with four coming this year and seven in 2022.
These purchases are also notable since Amazon is buying the planes outright instead of leasing them. The decision to buy so many planes signals a long-term commitment towards building a reliable fleet for shipping. In a report from Street Insider, Vice President of Amazon Global Air Sarah Rhoads said,
“Our goal is to continue delivering for customers across the U.S. in the way that they expect from Amazon, and purchasing our own aircraft is a natural next step toward that goal….Having a mix of both leased and owned aircraft in our growing fleet allows us to better manage our operations, which in turn helps us to keep pace in meeting our customer promises”
The former passenger planes will be extensively refitted for their mission as freight aircraft. Photo: Vincenzo Pace | JFKJets.com
Strategic move
Amazon’s purchase comes at a strategic time, as passenger airlines continue to struggle but cargo demand surges globally. As most of the world stays at home, the demand for online shopping and fast shipping has surged, significantly boosting companies like Amazon, whose stock price is up nearly 70%.
Amazon reportedly purchased the four 767-300ERs from WestJet last March, just as the pandemic shut down travel globally. According to Planespotters.net, these four aircraft were registered C-FOGT, C-FOGJ, C-FWAD, and C-GOGN. While they were only at WestJet for five years (where they had a transformative impact), the planes are all over 26 years old.
The planes are currently at Mexico City Airport undergoing conversion to freighter aircraft and will come into service this year.
Amazon also picked up all seven 767s that were retired by Delta in 2020. These aircraft are all roughly 20 years old and five were retired in early 2020 due to the pandemic. They will now undergo conversion now and enter service in 2022.
Growing fleet
The addition of 11 aircraft will take Amazon’s 767 fleet from 44 to 55 aircraft in the coming year, a 25% increase. We may see more purchases from the online giant in the coming years as more airlines retire their older aircraft models.
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While old planes do not make sense for passenger airlines, cargo airlines tend to have much older fleets (Amazon’s fleet of 737s and 767s averages 24 years). This explains why Amazon is looking to buy second-hand planes over signing multi-billion orders.
Amazon could add more planes as airlines continue to retire older aircraft. Photo: Vincenzo Pace | JFKJets.com
What do you think about Amazon’s purchase? Let us know in the comments!
TORONTO – Cineplex Inc. reported a loss in its latest quarter compared with a profit a year ago as it was hit by a fine for deceptive marketing practices imposed by the Competition Tribunal.
The movie theatre company says it lost $24.7 million or 39 cents per diluted share for the quarter ended Sept. 30 compared with a profit of $29.7 million or 40 cents per diluted share a year earlier.
The results in the most recent quarter included a $39.2-million provision related to the Competition Tribunal decision, which Cineplex is appealing.
The Competition Bureau accused the company of misleading theatregoers by not immediately presenting them with the full price of a movie ticket when they purchased seats online, a view the company has rejected.
Revenue for the quarter totalled $395.6 million, down from $414.5 million in the same quarter last year, while theatre attendance totalled 13.3 million for the quarter compared with nearly 15.7 million a year earlier.
Box office revenue per patron in the quarter climbed to $13.19 compared with $12 in the same quarter last year, while concession revenue per patron amounted to $9.85, up from $8.44 a year ago.
This report by The Canadian Press was first published Nov. 6, 2024.
TORONTO – Restaurant Brands International Inc. reported net income of US$357 million for its third quarter, down from US$364 million in the same quarter last year.
The company, which keeps its books in U.S. dollars, says its profit amounted to 79 cents US per diluted share for the quarter ended Sept. 30 compared with 79 cents US per diluted share a year earlier.
Revenue for the parent company of Tim Hortons, Burger King, Popeyes and Firehouse Subs, totalled US$2.29 billion, up from US$1.84 billion in the same quarter last year.
Consolidated comparable sales were up 0.3 per cent.
On an adjusted basis, Restaurant Brands says it earned 93 cents US per diluted share in its latest quarter, up from an adjusted profit of 90 cents US per diluted share a year earlier.
The average analyst estimate had been for a profit of 95 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
ST. JOHN’S, N.L. – Fortis Inc. reported a third-quarter profit of $420 million, up from $394 million in the same quarter last year.
The electric and gas utility says the profit amounted to 85 cents per share for the quarter ended Sept. 30, up from 81 cents per share a year earlier.
Fortis says the increase was driven by rate base growth across its utilities, and strong earnings in Arizona largely reflecting new customer rates at Tucson Electric Power.
Revenue in the quarter totalled $2.77 billion, up from $2.72 billion in the same quarter last year.
On an adjusted basis, Fortis says it earned 85 cents per share in its latest quarter, up from an adjusted profit of 84 cents per share in the third quarter of 2023.
The average analyst estimate had been for a profit of 82 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
