Name: American Airlines Group Inc. (NASDAQ:AAL) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Download chart

American Airlines Group Inc., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Passenger	48,512)	44,568)	26,063)	14,518)	42,010)
Cargo	812)	1,233)	1,314)	769)	863)
Other	3,464)	3,170)	2,505)	2,050)	2,895)
Operating revenues	52,788)	48,971)	29,882)	17,337)	45,768)
Aircraft fuel and related taxes	(12,257)	(13,791)	(6,792)	(2,581)	(7,526)
Salaries, wages and benefits	(14,580)	(12,972)	(11,817)	(10,960)	(12,609)
Regional expenses	(4,643)	(4,385)	(3,204)	(4,892)	(7,501)
Maintenance, materials and repairs	(3,265)	(2,684)	(1,979)	(1,583)	(2,380)
Other rent and landing fees	(2,928)	(2,730)	(2,619)	(1,536)	(2,055)
Aircraft rent	(1,369)	(1,395)	(1,425)	(1,341)	(1,326)
Selling expenses	(1,799)	(1,815)	(1,098)	(513)	(1,602)
Depreciation and amortization	(1,936)	(1,977)	(2,019)	(2,040)	(1,982)
Labor contract expenses	(989)	—)	—)	(228)	—)
Severance expenses	(23)	—)	(168)	(1,408)	(11)
Fleet impairment	—)	(149)	—)	(1,484)	(213)
Litigation reserve adjustments	—)	(37)	19)	—)	53)
PSP Financial Assistance	—)	—)	4,162)	3,710)	—)
Mark-to-market adjustments on bankruptcy obligations, net	—)	—)	3)	49)	11)
Fleet restructuring expenses	—)	—)	—)	—)	(271)
Merger integration expenses	—)	—)	—)	—)	(191)
Other operating special items, net	41)	(7)	(10)	18)	(13)
Mainline operating special items, net	(971)	(193)	4,006)	657)	(635)
Other	(6,006)	(5,422)	(3,994)	(2,969)	(5,087)
Operating expenses	(49,754)	(47,364)	(30,941)	(27,758)	(42,703)
Operating income (loss)	3,034)	1,607)	(1,059)	(10,421)	3,065)
Interest income	591)	216)	18)	41)	127)
Interest expense, net	(2,145)	(1,962)	(1,800)	(1,227)	(1,095)
Other income (expense), net	(359)	325)	293)	154)	159)
Nonoperating expense, net	(1,913)	(1,421)	(1,489)	(1,032)	(809)
Income (loss) before income taxes	1,121)	186)	(2,548)	(11,453)	2,256)
Income tax (provision) benefit	(299)	(59)	555)	2,568)	(570)
Net income (loss)	822)	127)	(1,993)	(8,885)	1,686)

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 severe contraction in 2020 followed by a progressive recovery in revenues and a return to operating profitability. Total operating revenues experienced a significant decline of approximately 62% in 2020, falling from 45,768 million USD to 17,337 million USD, before rebounding to reach a peak of 52,788 million USD by the end of 2023.

Revenue Stream Dynamics: Passenger revenue serves as the primary driver of total income, mirroring the overall trajectory of the business. After dropping to 14,518 million USD in 2020, it grew steadily to 48,512 million USD in 2023, surpassing pre-pandemic levels. Cargo revenue exhibited a distinct pattern, peaking in 2021 at 1,314 million USD during a period of global supply chain disruptions, before declining to 812 million USD in 2023. Other revenue sources showed consistent growth from 2020 onwards, increasing from 2,050 million USD to 3,464 million USD over the period.
Operating Expense Trends: Fuel costs demonstrate extreme volatility, dropping to 2,581 million USD in 2020 and spiking to a period high of 13,791 million USD in 2022, reflecting fluctuations in global energy prices and flight volume. Labor costs, comprising salaries, wages, and benefits, have trended upward since 2020, rising from 10,960 million USD to 14,580 million USD in 2023. Conversely, regional expenses saw a permanent structural decline, falling from 7,501 million USD in 2019 to a range between 4,385 million USD and 4,643 million USD in 2022 and 2023.
Profitability and Margin Recovery: Operating income transitioned from a robust 3,065 million USD in 2019 to a deep loss of 10,421 million USD in 2020. A return to operating profitability was achieved in 2022 with 1,607 million USD, further strengthening to 3,034 million USD in 2023. Net income lagged behind operating recovery; while the company returned to a positive net income of 127 million USD in 2022 and 822 million USD in 2023, these figures remain below the 1,686 million USD reported in 2019.
Non-Operating Financial Obligations: A significant increase in debt-servicing costs is evident, as net interest expense nearly doubled from 1,095 million USD in 2019 to 2,145 million USD in 2023. The financial impact of the 2020-2021 downturn was partially mitigated by PSP Financial Assistance, which provided inflows of 3,710 million USD and 4,162 million USD in those respective years. The widening gap between operating income and net income in the latter years is largely attributable to these rising interest obligations.

AI Ask an analyst for more

My previous chats

Add tokens

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?