Operating Profit Margin
since 2013
Calculation
American Airlines Group Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income (loss)1 | ÷ | Operating revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 5.75% | = | 100 | × | 3,034) | ÷ | 52,788) |
| Dec 31, 2022 | 3.28% | = | 100 | × | 1,607) | ÷ | 48,971) |
| Dec 31, 2021 | -3.54% | = | 100 | × | (1,059) | ÷ | 29,882) |
| Dec 31, 2020 | -60.11% | = | 100 | × | (10,421) | ÷ | 17,337) |
| Dec 31, 2019 | 6.70% | = | 100 | × | 3,065) | ÷ | 45,768) |
| Dec 31, 2018 | 5.96% | = | 100 | × | 2,656) | ÷ | 44,541) |
| Dec 31, 2017 | 9.61% | = | 100 | × | 4,058) | ÷ | 42,207) |
| Dec 31, 2016 | 13.15% | = | 100 | × | 5,284) | ÷ | 40,180) |
| Dec 31, 2015 | 15.14% | = | 100 | × | 6,204) | ÷ | 40,990) |
| Dec 31, 2014 | 9.96% | = | 100 | × | 4,249) | ÷ | 42,650) |
| Dec 31, 2013 | 5.23% | = | 100 | × | 1,399) | ÷ | 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 operating performance of American Airlines Group Inc. between 2013 and 2023 is characterized by significant volatility, marked by an initial growth phase, a period of gradual contraction, a severe systemic shock, and a subsequent recovery.
- Expansion and Peak Profitability (2013–2015)
- A strong upward trend in operating efficiency is observed during the early part of the decade. The operating profit margin rose consistently from 5.23% in 2013 to a peak of 15.14% in 2015. This period coincided with a substantial increase in operating revenues, which grew from 26.74 billion USD to 40.99 billion USD, suggesting a period of high operational leverage and effective cost management.
- Pre-Pandemic Margin Compression (2016–2019)
- Following the 2015 peak, a downward trend in margins is evident. The operating profit margin declined to 13.15% in 2016 and continued to erode, reaching 5.96% by 2018. Despite revenues remaining relatively stable or slightly increasing—reaching 45.77 billion USD in 2019—operating income failed to keep pace, indicating rising operating costs or pricing pressures during this interval.
- Crisis Impact and Operational Collapse (2020–2021)
- The year 2020 represents a critical inflection point, characterized by a severe collapse in both revenue and profitability. Operating revenues plummeted to 17.34 billion USD, while operating income swung to a loss of 10.42 billion USD, resulting in a negative operating profit margin of -60.11%. While 2021 showed signs of recovery with revenues rising to 29.88 billion USD, the operating margin remained negative at -3.54%, reflecting the lingering impact of the industry-wide downturn.
- Recovery and Stabilization (2022–2023)
- A return to profitability is observed starting in 2022. Operating revenues expanded rapidly, reaching 52.79 billion USD by 2023, the highest level in the analyzed period. This revenue growth translated into a positive operating profit margin of 3.28% in 2022 and 5.75% in 2023. Although the current margins have stabilized, they remain significantly lower than the peaks observed in 2015 and 2016, suggesting a new operational baseline in the post-pandemic environment.
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Comparison to Competitors
American Airlines Group Inc., operating 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 | 5.75% | 5.45% | 2.98% | 37.65% | 7.84% | 10.05% |
| Dec 31, 2022 | 3.28% | 6.68% | -5.75% | 39.87% | 5.20% | 13.05% |
| Dec 31, 2021 | -3.54% | 6.98% | -21.97% | 42.83% | -4.15% | 13.17% |
| Dec 31, 2020 | -60.11% | 3.49% | -43.66% | 40.11% | -41.41% | 9.08% |
| Dec 31, 2019 | 6.70% | 6.41% | -60.76% | 39.40% | 9.94% | 10.52% |
| Dec 31, 2018 | 5.96% | 7.44% | — | 37.30% | 7.97% | 9.77% |
| Dec 31, 2017 | 9.61% | 8.35% | — | 37.95% | 9.27% | 11.43% |
| Dec 31, 2016 | 13.15% | 6.11% | — | 36.47% | 11.87% | 8.98% |
| Dec 31, 2015 | 15.14% | 3.93% | — | 36.91% | 13.64% | 13.14% |
| Dec 31, 2014 | 9.96% | 7.56% | — | 36.49% | 6.10% | 8.53% |
| Dec 31, 2013 | 5.23% | 5.76% | — | 33.90% | 3.26% | 12.69% |
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).