Sun Country Airlines (NASDAQ: SNCY) has extended its Air Transport Services Agreement with Amazon for another 6 years. As part of this new contract, Sun Country will add up to eight more Boeing 737-800 cargo planes next year.
This expansion will grow Sun Country’s cargo fleet from 12 to up to 20 planes. The first additional aircraft will take off in the first quarter of 2025, and all eight new planes are expected to be in operation by the third quarter of 2025.
Sun Country Airlines’ cargo services
Minnesota-based airline is a hybrid low-cost carrier that combines scheduled service, charter, and cargo operations. The company provides cargo services for Amazon, flying to destinations in North America, Central America, and the Caribbean.
Strong air cargo demand
In its latest report, the The International Air Transport Association (IATA) says global air cargo markets are showing continuing strong annual growth in demand. Looking at the month of May, the organization says air cargo demand moved up sharply across all regions.
“The sector benefited from trade growth, booming e-commerce and capacity constraints on maritime shipping. The outlook remains largely positive with purchasing managers showing expectations for future growth,” reads the report.
Red Sea crisis
The Red Sea continues to cause waves in the shipping and logistics sector. Locate2u previously reported Maersk’s CEO Vincert Clerc saying the next few months will be tough for carriers and businesses alike.
Shippers had to adapt earlier this year, shifting cargo from ocean freight to air freight to mitigate the Red Sea crisis’ effect on cargo movement. The concern for businesses though is that there’s no light at the end of the tunnel just yet. The Red Sea situation wages on.
Benefits of shipping air freight
- Speed: Companies may need stock urgently and choose air freight as it’s a much faster option than ocean freight. The Red Sea crisis may force manufacturers and store owners to look to air freight to prevent a serious shortage in their production line or store shelves.
- Reliability: Airlines run strict schedules. These schedules make it a reliable option for air freight cargo. Fresh produce is often flown via airfreight so items arrive fresh at a destination.
- Efficiency: Shipping by air freight is a great time saver. A manufacturer may need an urgent part to complete a project. Placing the item as air cargo will allow the manufacturer to save time instead of waiting a few weeks for ocean freight to arrive in port.
US air cargo market
Business Market Insights reports the transportation of temperature-sensitive products including drugs, chemicals, and medicines is creating a huge opportunity for the air cargo market.
“Almost 68% of all biotech products are temperature sensitive. In addition, Marken announced clinical home healthcare services that include clinical drug storage, direct-to-patient delivery, biologic sample collection, central pharmacy, and home care/nursing services,” reads the report.
Photo Credit: Sun Country Airlines (Facebook)
About the author
Sharl is a qualified journalist. He has over 10 years’ experience in the media industry, including positions as an editor of a magazine and Business Editor of a daily newspaper. Sharl also has experience in logistics specifically operations, where he worked with global food aid organisations distributing food into Africa. Sharl enjoys writing business stories and human interest pieces.
