Air Freight Pilots’ Strike Risks Amazon’s $117B Logistics Revenue

December 5, 2023
Air Freight Pilots' Strike Risks Amazon's $117B Logistics Revenue

In a move that could disrupt Amazon’s extensive delivery network, pilots from Air Transport International (ATI), a crucial air freight provider for the tech giant, have voted to authorize a potential strike.

This development comes amid mounting concerns over low pay and an increase in turnover among ATI pilots, potentially impacting Amazon’s $117 billion logistics revenue.

Join our WhatsApp Channel

ATI, responsible for operating half of the US aircraft in service for Amazon, has seen dissatisfaction brewing among its 640 pilots over wage stagnation compared to industry standards.

This discontent has fueled support for a strike, which, if realized, could introduce disruptions to Amazon’s delivery operations.

READ ALSO: EU To Probe Jeff Bezos’s Amazon’s Consumer Protection Measures

The looming strike, supported by 98% of ATI’s pilot workforce, highlights a growing rift between the pilots’ union and Air Transport Services Group (ATSG), the parent company of ATI.

Federal law procedures, overseen by the National Mediation Board, will guide the strike’s trajectory, including a mandatory 30-day cooling-off period if an impasse is declared.

Amazon’s reliance on ATI’s air services is palpable, with 94% of the freight provider’s flying hours dedicated to fulfilling Amazon deliveries.

This dependency underscores the potential impact a strike might have on Amazon Air’s operations, which orchestrates over 330 daily flights in the US alone, facilitating transportation from fulfillment centers to airports.

ATI’s pilot attrition rate has soared, with over a third leaving this year alone, sparking concerns over diminishing service quality and wage discrepancies.

This discontent echoes a situation in 2016 when ABX Air pilots went on strike, albeit being deemed illegal by a judge, compelling the pilots to return to work swiftly.

As negotiations persist between the pilots’ union and ATI, the looming threat of a strike underscores the fragility of the relationship between the air freight provider and Amazon, heralding challenges for the tech giant’s expansive logistics network.

emmmmmm
+ posts

Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.

Emmanuel Ochayi

Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.

TELEMMGLPICT trans NvBQzQNjvBqpVlberWdEgFPZtcLiMQfydmClwgbjjulYfPTELibA
Previous Story

Premier League Announces New Record £6.7bn Broadcast Deal 

2024 Budget: Gov Makinde Presents N434.4bn As Education Gets Highest With 20.8%
Next Story

2024 Budget: Gov Makinde Presents N434.4bn, Education Gets Highest With 20.8%

Featured Stories

Latest from Business

Tony Elumelu: Personal Branding As Corporate Strategy

Tony Elumelu: Personal Branding As Corporate Strategy By Tony Onyima, Ph.D.Join our WhatsApp Channel There are four things I love about Mr Tony Elumelu, the Chairman of Heirs Holdings and the United Bank for Africa (UBA). His passion, confidence, energy, and discipline.

CBN Revokes Licences of Aso Savings, Union Homes

The Central Bank of Nigeria (CBN) has revoked the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, two primary mortgage banks in Nigeria. The revocation, announced on Tuesday, December 16, 2025, through a statement
NGX ASI Further Drops By 0.67%, As BUA Cement, Eterna Among Top Losers

NGX Extends Gains As Market Cap Increases By N13.53bn

The market capitalisation of the Nigerian Exchange Limited, also known as the stock market, closed at N95.28 trillion on Tuesday, December 16. According to data provided by the NGX, the market capitalisation grew by N13.53 billion from the N95.26 billion posted on
TELEMMGLPICT trans NvBQzQNjvBqpVlberWdEgFPZtcLiMQfydmClwgbjjulYfPTELibA
Previous Story

Premier League Announces New Record £6.7bn Broadcast Deal 

2024 Budget: Gov Makinde Presents N434.4bn As Education Gets Highest With 20.8%
Next Story

2024 Budget: Gov Makinde Presents N434.4bn, Education Gets Highest With 20.8%

Don't Miss

Mike Johnson On Transgender Representative: "A Man Cannot Become A Woman"

Mike Johnson On Transgender Representative: ‘A Man Cannot Become A Woman’

Mike Johnson Declines to Answer Key Question House Speaker, Mike
Naira Ends Week With N59.71 Gain At Official Market

Naira Gains At Official Investors Window

As the official investors and exporters windows closed on the