Sun Country Airlines in the first quarter took possession of three Amazon cargo jets, but only one is in service so far for the retail and logistics giant because integrating them into the existing fleet requires additional work, the company said Friday.
Amazon is transferring eight leased Boeing 737-800 converted freighters to Sun Country (NASDAQ: SCNY) from previous contractor Atlas Air. Sun Country plans to have all the narrowbody freighters in service by the end of summer, bringing the dedicated Amazon (NASDAQ: AMZN) fleet to 20 aircraft and doubling the airline’s cargo revenue.
The initial Amazon-supplied aircraft began flying packages in late March. The other two cargo jets will be inducted into the fleet this quarter, the Minneapolis-based carrier said in its latest financial results.
Sun Country CEO Jude Bricker told analysts on the quarterly earnings call that the amount of preparation necessary to absorb each used 737-800 freighter into the fleet varies because they may need parts to be replaced or inconsistent maintenance records to be resolved during the transition from the prior operator.
The integration delays increase costs because Sun Country has staffed up on pilots to operate the aircraft and can’t temporarily switch them to passenger operations because scheduled flights are planned months in advance and demand for ad hoc charters is difficult to project, he explained. It should be noted that delays so far are minor, and the entry-into-service timeline for all eight freighters is unchanged.
To continue reading this article...
Already have an account? Sign In
Create a Free Account
No payment required
