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Stock Analysis on Net

American Airlines Group Inc. (NASDAQ:AAL)

This company has been moved to the archive! The financial data has not been updated since February 21, 2024.

Common-Size Income Statement

American Airlines Group Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Passenger 91.90 91.01 87.22 83.74 91.79
Cargo 1.54 2.52 4.40 4.44 1.89
Other 6.56 6.47 8.38 11.82 6.33
Operating revenues 100.00% 100.00% 100.00% 100.00% 100.00%
Aircraft fuel and related taxes -23.22 -28.16 -22.73 -14.89 -16.44
Salaries, wages and benefits -27.62 -26.49 -39.55 -63.22 -27.55
Regional expenses -8.80 -8.95 -10.72 -28.22 -16.39
Maintenance, materials and repairs -6.19 -5.48 -6.62 -9.13 -5.20
Other rent and landing fees -5.55 -5.57 -8.76 -8.86 -4.49
Aircraft rent -2.59 -2.85 -4.77 -7.73 -2.90
Selling expenses -3.41 -3.71 -3.67 -2.96 -3.50
Depreciation and amortization -3.67 -4.04 -6.76 -11.77 -4.33
Labor contract expenses -1.87 0.00 0.00 -1.32 0.00
Severance expenses -0.04 0.00 -0.56 -8.12 -0.02
Fleet impairment 0.00 -0.30 0.00 -8.56 -0.47
Litigation reserve adjustments 0.00 -0.08 0.06 0.00 0.12
PSP Financial Assistance 0.00 0.00 13.93 21.40 0.00
Mark-to-market adjustments on bankruptcy obligations, net 0.00 0.00 0.01 0.28 0.02
Fleet restructuring expenses 0.00 0.00 0.00 0.00 -0.59
Merger integration expenses 0.00 0.00 0.00 0.00 -0.42
Other operating special items, net 0.08 -0.01 -0.03 0.10 -0.03
Mainline operating special items, net -1.84% -0.39% 13.41% 3.79% -1.39%
Other -11.38 -11.07 -13.37 -17.13 -11.11
Operating expenses -94.25% -96.72% -103.54% -160.11% -93.30%
Operating income (loss) 5.75% 3.28% -3.54% -60.11% 6.70%
Interest income 1.12 0.44 0.06 0.24 0.28
Interest expense, net -4.06 -4.01 -6.02 -7.08 -2.39
Other income (expense), net -0.68 0.66 0.98 0.89 0.35
Nonoperating expense, net -3.62% -2.90% -4.98% -5.95% -1.77%
Income (loss) before income taxes 2.12% 0.38% -8.53% -66.06% 4.93%
Income tax (provision) benefit -0.57 -0.12 1.86 14.81 -1.25
Net income (loss) 1.56% 0.26% -6.67% -51.25% 3.68%

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).

The financial performance from 2019 to 2023 is characterized by a period of extreme volatility followed by a gradual recovery toward pre-pandemic operational norms. A significant contraction in operating margins occurred in 2020, with a subsequent trend of stabilization and return to profitability by 2023.

Revenue Stream Composition
Passenger revenues remained the primary income driver, though they experienced a dip to 83.74% of total operating revenues in 2020 before recovering to 91.90% by 2023. Conversely, cargo revenues saw a temporary surge during the 2020-2021 period, peaking at 4.44% in 2020, before declining to 1.54% in 2023.
Operating Expense Volatility
Salaries, wages, and benefits showed the most dramatic fluctuation, spiking to 63.22% of operating revenues in 2020 due to the collapse in revenue, then normalizing to 27.62% by 2023. Regional expenses followed a similar pattern, peaking at 28.22% in 2020 before dropping to 8.80% in 2023. Aircraft fuel and related taxes peaked in 2022 at 28.16% of revenues, indicating a period of heightened fuel price pressure compared to the 16.44% observed in 2019.
Impact of Special Items and Assistance
Financial stability during the downturn was significantly supported by PSP Financial Assistance, which offset operating expenses by 21.40% in 2020 and 13.93% in 2021. Severe one-time charges were recorded in 2020, including fleet impairment at 8.56% and severance expenses at 8.12% of operating revenues, both of which became negligible or disappeared in subsequent years.
Profitability and Margin Recovery
Operating income shifted from a positive 6.70% in 2019 to a massive loss of 60.11% in 2020. A steady recovery trend is evident, with operating income returning to positive territory in 2022 (3.28%) and improving further to 5.75% in 2023. Net income mirrored this trend, moving from a loss of 51.25% in 2020 to a modest profit of 1.56% in 2023, although it remains below the 3.68% margin seen in 2019.
Non-Operating Analysis
Interest expenses as a percentage of revenue peaked at 7.08% in 2020 and moderated to 4.06% by 2023. Interest income showed a gradual increase, reaching 1.12% of operating revenues in 2023, suggesting a shift in the company's cash position or interest rate environment.

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