Analysis of Inventory
Inventory Disclosure
American Airlines Group Inc., balance sheet: inventory
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Aircraft fuel, spare parts and supplies, net | 2,400) | 2,279) | 1,795) | 1,614) | 1,851) |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
An analysis of the inventory levels for aircraft fuel, spare parts, and supplies reveals a volatile but ultimately upward trajectory over the five-year period ending December 31, 2023. After an initial contraction, the inventory value experienced sustained growth, surpassing pre-2020 levels by 2022.
- Initial Contraction (2019–2020)
- A decline in inventory is observed between 2019 and 2020, with values dropping from 1,851 million USD to 1,614 million USD. This represents a reduction of approximately 12.8%, indicating a decrease in the stock of fuel and supplies held during this period.
- Recovery and Stabilization (2020–2021)
- A reversal of the downward trend occurred in 2021, as inventory levels rose to 1,795 million USD. This recovery of 11.2% suggests a replenishment of spare parts and fuel supplies as operational requirements began to normalize.
- Accelerated Growth and Peak Levels (2022–2023)
- Significant expansion is noted from 2021 through 2023. The most substantial year-over-year increase occurred between 2021 and 2022, where inventory surged by 26.9% to 2,279 million USD. This growth continued into 2023, reaching a period high of 2,400 million USD, a 5.3% increase over the previous year.
- Long-term Comparative Variance
- Comparing the 2023 closing balance to the 2019 baseline reveals an overall increase of 549 million USD, or 29.7%. The data indicates a strategic or operational shift toward maintaining higher levels of net fuel and supplies compared to the pre-2020 period.
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