Air Transport Services Group (ATSG), which handles cargo for Amazon and DHL, said the companies are cutting back on flights in response to lower customer demand. 

"Both companies are adjusting their ground and air distribution and fulfillment networks in the United States to conform to reduced U.S. economic growth and consumer spending levels in the first half of 2023," the company said in a news release. 

ATSG said the 767 freighters dedicated to those customers will see reduced schedules and fewer block hours per aircraft in 2023 compared to last year. 

This tracks with recent data from the International Air Transport Association, which found that global demand for cargo was down 13.7 percent year-over-year in November.

“Air cargo performance softened in November, the traditional peak season," said Willie Walsh, director of IATA. "Resilience in the face of economic uncertainties is demonstrated with demand being relatively stable on a month-to-month basis. But market signals are mixed."

Amazon notably just reported one of its worst-ever quarters. The company has announced plans to cut 18,000 jobs and hit the brakes on its ongoing build-out of warehouses.

Share:
More In Business
Small grocers and convenience stores feel an impact as customers go without SNAP benefits
Some small grocery stores and neighborhood convenience stores are eager for the U.S. government shutdown to end and for their customers to start receiving federal food aid again. Late last month, the Trump administration froze funding for the SNAP benefits that about 42 million Americans use to buy groceries. The U.S. Department of Agriculture says about 74% of the assistance was spent last year at superstores like Walmart and supermarkets like Kroger. Around 14% went to smaller stores that are more accessible to SNAP beneficiaries. A former director of the United Nations World Food Program says SNAP is not only a social safety net for families but a local economic engine that supports neighborhood businesses.
Load More