Atlas Air to End Domestic 737 and 767 CMI Services with Amazon in 2025

Published: Wednesday, June 5, 2024

New York state-based lessor and cargo airline Atlas Air will end domestic US Boeing 737 and 767 CMI (Crew, Maintenance, and Insurance) services with e-commerce giant Amazon next year.

Atlas Air Worldwide said in a statement that the decision falls in line with its fleet strategy, but it doesn’t spell the end of Atlas Air’s relationship with Amazon.

“We completed a negotiation with Amazon to exit domestic 737 and 767 CMI service flying for Amazon, in line with our strategic plan. In connection with this negotiation, we also entered into three-year contract extensions for the Dry Lease of 16 767-300 converted freighters, through our Titan subsidiary, that will commence following the expiration of each of the original 10-year Dry Lease contracts.”

Titan Aviation is a freighter-centric leasing company focused on the acquisition, sale, dry leasing, sale-leaseback, marketing and servicing of commercial aircraft and related equipment.

“We are proud of the solid performance we delivered throughout our nearly decade-long partnership with Amazon. We look forward to continuing our relationship together through our Titan business,” added Atlas.

The company said it now aims to focus on investing in widebody operations and e-commerce opportunities.

“With the Amazon CMI service ending in mid-2025, we will reallocate resources to expand our investments in global, long-haul service with widebody aircraft.

“The widebody market is where we continue to see the strongest demand from our customers, as well as expanding opportunities in global e-commerce. Atlas continues to expand its fleet of widebody freighters with the addition of eight new 747 and 777 aircraft in 2024.

“These aircraft will be placed immediately into service to complement the continued strong performance of the Company’s 767 fleet in service to US military and commercial customers.”

In May, ATSG announced it will operate an additional 10 Boeing 767 freighters on behalf of Amazon Air.

The Amazon deal will see ATSG operate the additional 10 767 freighters over a five-year period, with the option to add a further 10 aircraft.

The ageing global freighter fleet is a primary concern for Atlas. Earlier this year, Atlas Air Worldwide chief executive, Michael Steen discussed how the number of freighters due for retirement is putting pressure on the overall global supply of freighter aircraft.