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Amazon (AMZN) Launches Central Hub for Its Air Cargo in US
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Amazon (AMZN - Free Report) recently announced that it has started Amazon Air Hub operations at the Cincinnati/Northern Kentucky International Airport.
The company has invested $1.5 billion in the underlined Air Hub, which will function as a primary hub for all Amazon Air’s cargo network in the United States.
The Hub, spanning 800,000 square feet, will manage millions of customer packages per week. It is equipped with robotics technology to seamlessly move and sort out packages across the building.
Further, it will generate more than 2,000 jobs and offer wages of up to $19.5 an hour, including other comprehensive benefits like medical, vision and dental.
The recent air transportation facility bodes well with the company’s deepening focus on expanding air cargo operations for quick delivery of goods.
Further, the latest move will add strength to Amazon’s existing delivery capacity, which, in turn, will help it enhance the shopping experience of customers during this unprecedented time. As a result, investors will continue to instill optimism in the stock.
Coming to price performance, Zacks Rank #4 (Sell) Amazon has returned 1.1% on a year-to-date basis against the industry's decline of 23.9%.
The e-commerce giant has been investing a huge amount to expand Amazon Air globally. It has expanded to more than 40 locations in the United States. Last year, it opened an European air hub at Germany’s Leipzig/Halle Airport.
Further, it has bought six million gallons of aviation fuel and invested in leading-edge electric ground service equipment.
Additionally, the company’s collaboration with Air Transport Services Group (ATSG - Free Report) to lease 12 additional Boeing 767-300 converted cargo aircraft remains noteworthy.
Further, Amazon purchased 11 Boeing 767-300 aircraft from Delta Air Lines and WestJet Airlines to strengthen in-house shipping as well as logistics services for supporting the company’s Prime-based ultrafast delivery services.
Further, Amazon’s partnership with Atlas Air Worldwide Holdings to expand its domestic air network remains a positive.
The air cargo market is globally growing in recent times due to rising consumer and retail industries.
Growing focus of e-commerce companies on faster delivery of goods to provide better shopping experience to customers is also driving this market.
Given upbeat scenario in the booming air cargo market, not only Amazon but also other players including FedEx Corporation (FDX - Free Report) , United Parcel Service, Deutsche Post DHL GROUP are making strong efforts to bolster their presence therein.
Recently, FedEx Corporation’s subsidiary, FedEx Express, announced that it will enhance its services in the North Seattle market by expanding operations to Paine Field.
Last month, United Parcel Service along with its subsidiary, UPS Flight Forward, announced that it will buy electric Vertical Takeoff and Landing aircraft from Beta Technologies to strengthen its air service in select small as well as mid-size markets.
Further, Deutsche Post DHL GROUP’s subsidiary DHL Express recently ordered 12 fully-electric Alice eCargo planes from Eviation. The delivery of aircrafts is expected by 2024. The recent move by DHL for sustainable aviation remains noteworthy.
Furthermore, strengthening distribution strength and expanding air hubs will continue to help Amazon in sustaining its dominant position in the e-commerce business against the likes of Walmart (WMT - Free Report) , Target, eBay and others which are also leaving no stone unturned to bolster their delivery system in a bid to boost online retail capabilities.
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Amazon (AMZN) Launches Central Hub for Its Air Cargo in US
Amazon (AMZN - Free Report) recently announced that it has started Amazon Air Hub operations at the Cincinnati/Northern Kentucky International Airport.
The company has invested $1.5 billion in the underlined Air Hub, which will function as a primary hub for all Amazon Air’s cargo network in the United States.
The Hub, spanning 800,000 square feet, will manage millions of customer packages per week. It is equipped with robotics technology to seamlessly move and sort out packages across the building.
Further, it will generate more than 2,000 jobs and offer wages of up to $19.5 an hour, including other comprehensive benefits like medical, vision and dental.
The recent air transportation facility bodes well with the company’s deepening focus on expanding air cargo operations for quick delivery of goods.
Further, the latest move will add strength to Amazon’s existing delivery capacity, which, in turn, will help it enhance the shopping experience of customers during this unprecedented time. As a result, investors will continue to instill optimism in the stock.
Coming to price performance, Zacks Rank #4 (Sell) Amazon has returned 1.1% on a year-to-date basis against the industry's decline of 23.9%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Growing Initiatives to Expand Amazon Air
The e-commerce giant has been investing a huge amount to expand Amazon Air globally. It has expanded to more than 40 locations in the United States. Last year, it opened an European air hub at Germany’s Leipzig/Halle Airport.
Further, it has bought six million gallons of aviation fuel and invested in leading-edge electric ground service equipment.
Additionally, the company’s collaboration with Air Transport Services Group (ATSG - Free Report) to lease 12 additional Boeing 767-300 converted cargo aircraft remains noteworthy.
Further, Amazon purchased 11 Boeing 767-300 aircraft from Delta Air Lines and WestJet Airlines to strengthen in-house shipping as well as logistics services for supporting the company’s Prime-based ultrafast delivery services.
Further, Amazon’s partnership with Atlas Air Worldwide Holdings to expand its domestic air network remains a positive.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
Competitive Scenario
The air cargo market is globally growing in recent times due to rising consumer and retail industries.
Growing focus of e-commerce companies on faster delivery of goods to provide better shopping experience to customers is also driving this market.
Given upbeat scenario in the booming air cargo market, not only Amazon but also other players including FedEx Corporation (FDX - Free Report) , United Parcel Service, Deutsche Post DHL GROUP are making strong efforts to bolster their presence therein.
Recently, FedEx Corporation’s subsidiary, FedEx Express, announced that it will enhance its services in the North Seattle market by expanding operations to Paine Field.
Last month, United Parcel Service along with its subsidiary, UPS Flight Forward, announced that it will buy electric Vertical Takeoff and Landing aircraft from Beta Technologies to strengthen its air service in select small as well as mid-size markets.
Further, Deutsche Post DHL GROUP’s subsidiary DHL Express recently ordered 12 fully-electric Alice eCargo planes from Eviation. The delivery of aircrafts is expected by 2024. The recent move by DHL for sustainable aviation remains noteworthy.
Furthermore, strengthening distribution strength and expanding air hubs will continue to help Amazon in sustaining its dominant position in the e-commerce business against the likes of Walmart (WMT - Free Report) , Target, eBay and others which are also leaving no stone unturned to bolster their delivery system in a bid to boost online retail capabilities.