Summary
- Amerijet joins other cargo airlines in cutting back operations as air cargo industry faces downturn and new normal.
- Amerijet parks some of its freighter fleet due to higher costs, lower demand, and end of major contracts.
- Cargo industry struggles after pandemic bubble bursts, with layoffs and cutbacks by express shippers.
After years of rapid fleet expansion, Amerijet has joined the ranks of cargo airlines that are cutting back their operations at the end of 2023 as the air cargo industry tries to find a new normal. The Miami-based airline has begun to park some of its freighter fleet in response to the downturn in the air cargo market.
A recent report by Frightwaves sites an Amerijet internal memo that indicates the airline was looking to park one of its freighters and defer heavy maintenance on two other aircraft as the airline struggles with higher cost, lower demand, and the end of two major contracts with the U.S Postal Service and DHL Express.
Amerijet Fleet Movement
Amerijet operates a fleet of 22 aircraft, operating both 767s and 757s. Amerijet has six 757s in total, which the airline began acquiring in 2021 after the airline had retired its 727 fleet. According to data available on Flightradar24.com, at least two 757-200s, N286GB and N818NH, have remained parked since April and October, respectively. Both of these freighters are operated on lease and were converted by Precision Aircraft Solutions after serving multiple airlines in passenger service.
At least two of Amerijets 767 freighters, N657GT and N659GT, are currently parked in Roswell (ROW), where they have remained since July. Two other 767s, N743AX and N274CM, have returned home to Air Transport Servies Group (ATSG) in Wilmington (ILN), where they have remained parked since May and September. A Fourth 767, N349CM, has remained parked in Mexico City (MEX) since November 22nd.
Photo: Amerijet
It is unclear how many aircraft of Amerijet’s fleet will need to remain parked or what other cost-cutting measures the airline will need to take while its revenues decline. Amerijet was unable to comment at press time.
Amerijet operates at least ten of its 767 freighters on lease from ATSG’s leasing subsidy Cargo Aircraft management. Amerijet has dry-leased freighters from CAM since 2010, with leases running anywhere between five and ten years, according to statements from ATSG.
Trouble in the Cargo industry
The news comes two months after Amerijet’s Chief Financial Officer, Joe Mozzali, stepped in as Chief Executive Officer following the departure of Tim Strauss. Mozzali had only become CEO after serving as CFO for a short seven months. For his part, Strauss’s year-long period as CEO was marked with turbulence as he attempted to leave the airline once before in 2021.
Amerijet’s problems aren’t occurring in a vacuum, as several cargo airlines have struggled after the bubble of demand for dedicated freighters from the COVID-19 pandemic popped with the return of belly capacity in passenger airlines. Amerijet’s customer DHL joins FedEx, and UPS in the ranks of express shippers who have announced layoffs and cutbacks.
Photo: Amerijet
Meanwhile, ATSG, for its part, recently had a change in leadership itself as its strategy officer, Mike Berger stepped into the role of President for the company.
While the cargo industry has stagnated over the past few months, declines are not expected to be long-term, and a few airlines have continued to grow. Recently, data from WorldACD recently indicated strong market performance in the Asia-Pacific region, while Boeing and Airbus have shown forecasts for growth in demand for both factory new, and converted freighters in the next decade. Meanwhile, both Cathay Pacific and Atlas Air made headlines in the past few days by placing major orders for new freighter aircraft from Boeing and Airbus.
What do you think of Amerijet’s decision to park its freighters? Is this a problem for Amerijet or a problem for the whole cargo industry? Let us know in the comments.
