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Amazon is building an air hub at Fort Worth Alliance Airport in Texas.

The air hub is expected to be fully operational next year, and will operate on the side of the airport also used by FedEx.

"AMZN's threat to UPS/FDX is growing and this is also a way for AMZN to save billions on shipping," according to Morgan Stanley analysts.

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Amazon is expanding its reach in air delivery with a new air hub in Texas, and that's a threat to legacy delivery giants UPS and FedEx, according to a new analysis from Morgan Stanley.

Amazon said earlier this week that it planned to build a regional air hub at Fort Worth Alliance Airport, which would support a handful of daily flights and infrastructure for sorting packages.

"Amazon's new air hub could compete directly with FedEx and UPS," a team of Morgan Stanley analysts led by Ravi Shanker wrote in a client note out Friday.

The hub could also allow Amazon to save between $1 billion and $2 billion next year, Shanker wrote.

"Our current work shows that despite being in the early innings of Amazon Air's rollout, Amazon's volumes moving onto Amazon Air are costing UPS/FDX roughly 200-300 [basis points] of volume growth," he said.

Shanker reiterated his bullish stance on Amazon. He wrote last week that it was poised to take market share from UPS and FedEx with its fleet of 40 Boeing 767 cargo planes. Specifically, he forecast UPS and FedEx's revenue would decline by a combined 10% by 2025.

Amazon already has an air hub at Cincinnati/Northern Kentucky International Airport. And while Amazon said the facility in Texas was the first of its kind for the company, it also announced plans last week to expand operations at Chicago's Rockford Airport.

Amazon shares have been on a wild ride this year, rising 75% through the first eight months on their way to an all-time high of $2,050.50 per share at the end of August. Since then, the stock has plunged 22% amid a broader stock-market rout.

Amazon is up 35% this year, while UPS and FedEx were down 21% and 29% respectively.

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