Amazon.com Inc. could take as much as a 30 percent stake in a large cargo airline, its second such deal this year as the e-commerce giant steps up efforts to take control of its own delivery logistics.
As part of the agreement, Atlas Air Worldwide Holdings will operate 20 Boeing 767-300 cargo planes for Amazon, according to a statement from the airline Thursday.
The Seattle-based retailer is moving quickly to build up its delivery network, seeking to wean itself from dependence on United Parcel Service Inc. and FedEx Corp. as it expands its Prime service, which promises orders in as fast as one day for some orders. In March, Amazon said it would lease 20 Boeing 767 freighters from Air Transport Services Group Inc.
Shares of Purchase, New York-based Atlas Air surged as much as 51 percent, the biggest intraday increase on record. The stock was up 46 percent to $55.98 at 9:35 a.m. in New York. Atlas Air also reported adjusted first-quarter earnings of 31 cents a share, exceeding the 26-cent average analyst estimate.
Atlas Air will operate the 20 converted freighters for Amazon on leases from seven to 10 years. Amazon was granted warrants to acquire as much as 20 percent of Atlas Air's common stock at $37.50 a share over a five-year period, with an option for an additional 10 percent at the same price over a period of seven years.
Atlas operates the world's biggest fleet of Boeing 747 freighter aircraft and supplies UPS. Amazon's potential 30 percent investment in Atlas comes after it gained the right to buy as much as 20 percent in Air Transport Services, as part of the March agreement to lease planes.