Amazon should take advantage of the depressed price of aircraft to drastically increase the size of its fleet and take on the increased demand for delivery services, according to Bank of America analyst Justin Post.
By taking advantage of the "golden opportunity," Post says that Amazon would increase its one-day shipping capabilities and provide more competition to FedEx and UPS.
The cost of leasing a B747-8F plunged by 13 percent since January, while B777s and Airbus 330s are cheaper by 10 percent due to airlines cutting back on capacity as the aftermath of the pandemic.
Amazon plans to increase the fleet size of its Prime Air to as much as 70 planes by 2021, up from 50 in 2019.
FedEx has 463 planes, while UPS has 275.
Amazon is already expanding to the delivery services industry from merely shipping goods from its fulfillment centers.
Amazon's shipping service directly competes with the likes of FedEx and UPS.
The threat prompted FedEx to end its ground delivery contract with Amazon.
Post sees Amazon's delivery capabilities potentially growing in market value of $75 billion to $171 billion in the U.S. in 2025.


Nvidia, ByteDance, and the U.S.-China AI Chip Standoff Over H200 Exports
Baidu Approves $5 Billion Share Buyback and Plans First-Ever Dividend in 2026
Sony Q3 Profit Jumps on Gaming and Image Sensors, Full-Year Outlook Raised
Rio Tinto Shares Hit Record High After Ending Glencore Merger Talks
Nasdaq Proposes Fast-Track Rule to Accelerate Index Inclusion for Major New Listings
TSMC Eyes 3nm Chip Production in Japan with $17 Billion Kumamoto Investment
Global PC Makers Eye Chinese Memory Chip Suppliers Amid Ongoing Supply Crunch
AMD Shares Slide Despite Earnings Beat as Cautious Revenue Outlook Weighs on Stock
SoftBank Shares Slide After Arm Earnings Miss Fuels Tech Stock Sell-Off
Amazon Stock Rebounds After Earnings as $200B Capex Plan Sparks AI Spending Debate
Once Upon a Farm Raises Nearly $198 Million in IPO, Valued at Over $724 Million
Alphabet’s Massive AI Spending Surge Signals Confidence in Google’s Growth Engine
SpaceX Prioritizes Moon Mission Before Mars as Starship Development Accelerates
Uber Ordered to Pay $8.5 Million in Bellwether Sexual Assault Lawsuit
SpaceX Pushes for Early Stock Index Inclusion Ahead of Potential Record-Breaking IPO
Instagram Outage Disrupts Thousands of U.S. Users
CK Hutchison Launches Arbitration After Panama Court Revokes Canal Port Licences 



