Net Profit Margin
since 2013
Calculation
American Airlines Group Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income (loss)1 | ÷ | Operating revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 1.56% | = | 100 | × | 822) | ÷ | 52,788) |
| Dec 31, 2022 | 0.26% | = | 100 | × | 127) | ÷ | 48,971) |
| Dec 31, 2021 | -6.67% | = | 100 | × | (1,993) | ÷ | 29,882) |
| Dec 31, 2020 | -51.25% | = | 100 | × | (8,885) | ÷ | 17,337) |
| Dec 31, 2019 | 3.68% | = | 100 | × | 1,686) | ÷ | 45,768) |
| Dec 31, 2018 | 3.17% | = | 100 | × | 1,412) | ÷ | 44,541) |
| Dec 31, 2017 | 4.55% | = | 100 | × | 1,919) | ÷ | 42,207) |
| Dec 31, 2016 | 6.66% | = | 100 | × | 2,676) | ÷ | 40,180) |
| Dec 31, 2015 | 18.57% | = | 100 | × | 7,610) | ÷ | 40,990) |
| Dec 31, 2014 | 6.76% | = | 100 | × | 2,882) | ÷ | 42,650) |
| Dec 31, 2013 | -6.86% | = | 100 | × | (1,834) | ÷ | 26,743) |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 US$ in millions
The financial performance over the 11-year period is characterized by extreme volatility, featuring a significant peak in efficiency during the mid-2010s, a catastrophic contraction in 2020, and a gradual recovery toward marginal profitability by 2023.
- Early Growth and Peak Profitability (2013–2015)
- A sharp recovery is observed starting in 2014, moving from a net profit margin of -6.86% in 2013 to a peak of 18.57% in 2015. This period represents the highest level of net income efficiency recorded, coinciding with a substantial increase in operating revenues from $26.7 billion to over $40 billion.
- Period of Margin Erosion (2016–2019)
- Following the 2015 peak, a consistent downward trend in profit margins is evident. Between 2016 and 2019, the net profit margin declined from 6.66% to 3.68%. This compression occurred despite operating revenues remaining stable or increasing slightly, indicating that cost growth outpaced revenue growth during these years.
- Severe Contraction and Crisis Impact (2020–2021)
- The most significant volatility occurred in 2020, where the net profit margin collapsed to -51.25%. This coincided with a drastic reduction in operating revenues, which fell to $17.3 billion from $45.7 billion the previous year. Although the margin improved to -6.67% in 2021, the company continued to operate at a net loss.
- Recovery and Current Profitability Status (2022–2023)
- A return to profitability was achieved in 2022 with a marginal net profit margin of 0.26%, which subsequently grew to 1.56% in 2023. Notably, while operating revenues reached record highs of $52.7 billion by the end of 2023, the net profit margin remains substantially lower than the levels observed in the 2014–2015 period, suggesting a more challenging cost environment in the post-crisis recovery phase.
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Comparison to Competitors
American Airlines Group Inc., net profit margin, long-term trends, comparison to competitors
| American Airlines Group Inc. | FedEx Corp. | Uber Technologies Inc. | Union Pacific Corp. | United Airlines Holdings Inc. | United Parcel Service Inc. | |
|---|---|---|---|---|---|---|
| Dec 31, 2023 | 1.56% | 4.41% | 5.06% | 26.45% | 4.87% | 7.37% |
| Dec 31, 2022 | 0.26% | 4.09% | -28.68% | 28.13% | 1.64% | 11.51% |
| Dec 31, 2021 | -6.67% | 6.23% | -2.84% | 29.92% | -7.97% | 13.25% |
| Dec 31, 2020 | -51.25% | 1.86% | -60.76% | 27.38% | -46.04% | 1.59% |
| Dec 31, 2019 | 3.68% | 0.77% | -60.13% | 27.27% | 6.96% | 5.99% |
| Dec 31, 2018 | 3.17% | 6.99% | — | 26.13% | 5.15% | 6.67% |
| Dec 31, 2017 | 4.55% | 4.97% | — | 50.43% | 5.65% | 7.45% |
| Dec 31, 2016 | 6.66% | 3.61% | — | 21.23% | 6.19% | 5.63% |
| Dec 31, 2015 | 18.57% | 2.21% | — | 21.88% | 19.39% | 8.30% |
| Dec 31, 2014 | 6.76% | 4.60% | — | 21.59% | 2.91% | 5.21% |
| Dec 31, 2013 | -6.86% | 3.52% | — | 19.98% | 1.49% | 7.89% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
Comparison to Sector (Transportation)
American Airlines Group Inc., net profit margin, long-term trends, comparison to sector (transportation)
| American Airlines Group Inc. | Transportation | |
|---|---|---|
| Dec 31, 2023 | 1.56% | 7.28% |
| Dec 31, 2022 | 0.26% | 4.73% |
| Dec 31, 2021 | -6.67% | 9.05% |
| Dec 31, 2020 | -51.25% | -2.93% |
| Dec 31, 2019 | 3.68% | 2.42% |
| Dec 31, 2018 | 3.17% | 8.67% |
| Dec 31, 2017 | 4.55% | 11.21% |
| Dec 31, 2016 | 6.66% | 7.00% |
| Dec 31, 2015 | 18.57% | 10.88% |
| Dec 31, 2014 | 6.76% | 6.86% |
| Dec 31, 2013 | -6.86% | 6.81% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
Comparison to Industry (Industrials)
American Airlines Group Inc., net profit margin, long-term trends, comparison to industry (industrials)
| American Airlines Group Inc. | Industrials | |
|---|---|---|
| Dec 31, 2023 | 1.56% | 8.32% |
| Dec 31, 2022 | 0.26% | 5.04% |
| Dec 31, 2021 | -6.67% | 5.85% |
| Dec 31, 2020 | -51.25% | 0.09% |
| Dec 31, 2019 | 3.68% | 4.11% |
| Dec 31, 2018 | 3.17% | 4.75% |
| Dec 31, 2017 | 4.55% | 5.79% |
| Dec 31, 2016 | 6.66% | 7.43% |
| Dec 31, 2015 | 18.57% | 6.48% |
| Dec 31, 2014 | 6.76% | 8.76% |
| Dec 31, 2013 | -6.86% | 8.23% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).