Alaska Airlines Restructures Amazon Cargo Deal for Ten A330-300 Freighters
Alaska Air Group converted its inherited ten Airbus A330-300 freighters into Amazon cargo operations and renegotiated the unprofitable fixed-fee contract acquired with Hawaiian Airlines 18 months ago. Executives say the updated agreement has moved the deal from losses to break-even, though further economic improvements remain under discussion.
1. Contract Background
Alaska Air Group inherited a fixed-fee cargo contract with Amazon when it acquired Hawaiian Airlines in late 2024. Under this arrangement, Amazon provides ten Airbus A330-300 passenger-to-freighter aircraft while Alaska Air supplies crews, maintenance and insurance across key U.S. distribution nodes.
2. Renegotiation Outcomes
Facing losses under the original terms, Alaska Air restructured the agreement to eliminate unprofitable margins. Management reports the updated deal achieves break-even economics but lacks disclosure of specific rate adjustments or fee structures.
3. Future Outlook
Alaska Air intends to continue discussions with Amazon to deepen collaboration and secure enhanced revenue terms. Executives are exploring additional operational efficiencies and potential network expansion to boost margins on the freighter fleet.