Amazon is leasing 20 Boeing 767 cargo planes

Boeing 767

Forget drones, Amazon is leasing 20 Boeing 767 cargo planes.

The world’s largest e-commerce provider has signed a lease with Air Transport Services Group. The lease will last between five and seven years.

Each of the jets are capable of carrying up to 88 tons of freight across the country.

ATSG CEO Joe Hete said in a statement that his company has been working closely with Amazon since last summer to provide it with a “fully customized air cargo network.”

In 2015 Amazon spent $11.5 billion on shipping, up about 32% from the year before, and up 74% from what it was paying just two years prior.

Sales and profits last year surged but the unexpected increase in shipping costs worried investors.

Amazon has promised to find new ways to speed up delivery times while reducing costs.

In December the company announced a new fleet of thousands of Amazon-branded trucks that will soon start making deliveries between fulfillment centers and sorting locations.

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The company has also petitioned the FAA to allow delivery drones for 30-minute deliveries to select customers.

As part of the new deal Amazon will have the option to purchase a 20% stake in ATSG. Shares at ATSG soared by 17% on Wednesday.

The company will continue to use third-party delivery services such as USPS and UPS for actual package delivery to customers.

Written by Tammy Johnson

Tammy Johnson

Tammy Johnson is the Retail Editor at BusinessPundit. She focuses on Fortune 500 retail company's and disruptive brick-and-mortar and e-commerce companies that are changing the retail landscape.