FDX - Amazon May Have Airline Troubles Over the Holidays
Christmas might not be so merry for Amazon.com (NASDAQ: AMZN) this year. Although it's expecting another record holiday season, with some analysts predicting it will account for 45% of all e-commerce sales, there is pressure building up behind its delivery operations that could force it to the breaking point.
Amazon is pushing next-day delivery through its Prime membership program just as it has lost FedEx (NYSE: FDX) as an air and ground delivery service, while the air cargo fleet operators that it uses for Amazon Air are bogged down in union contract negotiations that show few signs of being resolved.
There is little margin for error this Christmas, but Amazon's delivery capabilities may be stretched to the maximum, and any deviation from precision could cause a major upheaval.