Alaska Airlines Restructures Unprofitable Amazon Cargo Deal

Key Details Alaska Airlines has renegotiated its Amazon cargo contract to stop the bleeding, but executives indicate more work remains. The carrier operates 10 Airbus A330-300 freighters for Amazon, acquired when Alaska bought Hawaiian Airlines 18 months ago. Under the arrangement, Amazon owns the aircraft while Alaska provides crews, maintenance, and insurance. Why It Matters CEO Ben Minicucci stated the deal has moved from losses to breakeven, though profit margins remain thin. The original contract turned unprofitable following the transition from Hawaiian to Alaska operations, which have different crew bases and pilot compensation structures. Amazon typically demands minimal profit margins from vendors, making even marginal deals vulnerable. What's Next Both companies are headquartered in Seattle and have existing relationships that support continued negotiations. Minicucci emphasized the partnership is "getting healthier" with recent improvements, but expressed hope for deeper collaboration that benefits both parties. The carrier appears committed to making the e-commerce logistics relationship work long-term, though current economics require ongoing discussion.