Income Statement
Quarterly Data
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.
American Airlines Group Inc., consolidated income statement (quarterly data)
US$ in millions
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 trajectory of the entity is characterized by a severe contraction during the 2020-2021 period, followed by a volatile recovery in operating revenues and income. Total operating revenues experienced a precipitous decline from a 2019 average of approximately $11.4 billion to a low of $1.62 billion in the second quarter of 2020. By the end of 2023, revenues recovered to $13.06 billion, reflecting a return to and eventual exceedance of pre-pandemic levels, although growth remained inconsistent.
- Revenue Stream Analysis
- Passenger revenue serves as the primary driver of total income, exhibiting the most extreme volatility. After falling from $9.66 billion in March 2019 to $1.11 billion in June 2020, it climbed steadily to peak at $12.98 billion in June 2023. Conversely, cargo revenue provided a partial hedge during the travel slump, increasing from an average of $215 million in 2019 to a peak of $364 million in March 2022, before normalizing back to $199 million by December 2023.
- Operating Expense Trends
- Aircraft fuel and related taxes demonstrate high sensitivity to external market conditions, plummeting to $217 million in June 2020 before spiking to a period high of $4.02 billion in June 2022. Labor costs, represented by salaries, wages, and benefits, remained relatively inelastic compared to revenue; while they dipped slightly during the crisis, they trended upward over the long term, rising from $3.09 billion in early 2019 to a peak of $3.97 billion in September 2023.
- Profitability and Margins
- Operating income shifted from a state of modest profitability in 2019 to sustained losses throughout 2020 and 2021. The recovery phase was marked by significant fluctuations, with operating income reaching a high of $2.16 billion in June 2023, followed by a sharp decline to a loss of $223 million in September 2023, indicating continued operational instability despite higher top-line revenue.
- Financial Obligations and Non-Operating Costs
- A consistent upward trend is observed in net interest expenses, which increased from $271 million in March 2019 to $520 million in December 2023. This suggests a substantial increase in the debt burden incurred to maintain liquidity during the period of revenue collapse. Interest income also saw a notable increase in 2023, peaking at $168 million in June, which partially offset the rising cost of debt.
The overall net income profile reflects a transition from steady gains in 2019 to catastrophic quarterly losses exceeding $2 billion in 2020. While the entity returned to sporadic profitability in 2022 and 2023, the combination of rising labor costs and increased interest obligations continues to pressure the bottom line, preventing a return to the stable profit margins seen prior to 2020.
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