Common-Size Income Statement
Quarterly Data
American Airlines Group Inc., common-size consolidated income statement (quarterly data)
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
The financial performance from early 2019 through late 2023 is characterized by a period of stability, a severe operational collapse during 2020, and a subsequent recovery phase marked by volatility in input costs and margins.
- Revenue Stream Composition
- Passenger revenue remained the primary driver of operating revenues, consistently contributing over 91% in 2019 and returning to this level by 2022. A significant anomaly occurred in June 2020, where passenger revenue dropped to 68.31%. During this period, cargo and other revenue streams saw a proportional increase, with cargo peaking at 8.01% in June 2020 and other revenues reaching a peak of 23.67% in the same quarter. By 2023, the revenue mix reverted to pre-pandemic norms, with passenger revenue stabilizing between 91% and 92%.
- Operating Expense Dynamics
- Expense ratios exhibited extreme volatility relative to revenue. Salaries, wages, and benefits showed the most drastic fluctuation, spiking to -156.47% of operating revenues in June 2020 before normalizing to a range of -24% to -29% by 2022 and 2023. Regional expenses followed a similar pattern, peaking at -49.38% in June 2020 but subsequently decreasing to a more efficient range of -8% to -9% in the recovery period. Aircraft fuel and related taxes, which averaged around -16% in 2019, saw a significant increase in 2021 and 2022, peaking at -29.95% in June 2022, indicating heightened sensitivity to fuel price volatility or decreased fuel efficiency during the ramp-up phase.
- Operating Profitability and Margins
- Operating income margins transitioned from a positive range of 3.54% to 9.64% in 2019 to severe deficits in 2020, with the lowest point reaching -153.27% in June 2020. Recovery began in mid-2021, with margins returning to positive territory. However, the recovery was inconsistent, as evidenced by a peak of 15.39% in June 2023 followed by a dip to -1.65% in September 2023, suggesting ongoing challenges in maintaining consistent operational efficiency.
- Non-Operating Impacts and Net Income
- Interest expenses as a percentage of revenue spiked significantly during the 2020 revenue collapse, reaching -15.66% in June 2020, reflecting the burden of fixed debt obligations against diminished earnings. Income tax benefits provided a substantial offset during the loss-making quarters of 2020 and 2021, with the benefit peaking at 36.50% of revenues in June 2020. Net income mirrors the volatility of operating income, moving from steady positive margins in 2019 to deep losses in 2020 and 2021, eventually returning to a marginally positive state of 0.15% by December 31, 2023.
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