American Airlines Group (AAL)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	18,302,000	15,375,000	12,064,000	2,183,000	-4,476,000
Revenue	US$ in thousands	54,154,000	50,346,000	46,971,000	28,078,000	16,086,000
Gross profit margin		33.80%	30.54%	25.68%	7.77%	-27.83%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $18,302,000K ÷ $54,154,000K
= 33.80%

American Airlines Group's gross profit margin has shown significant improvement over the past few years. As of December 31, 2020, the gross profit margin was -27.83%, indicating a negative margin due to high costs relative to revenue. However, by December 31, 2024, the gross profit margin had increased to a healthier 33.80%, reflecting an improvement in cost management and revenue generation.

This positive trend suggests that American Airlines Group has been able to effectively control its production costs, increase efficiencies, or raise prices to enhance profitability. A rising gross profit margin signifies that the company is retaining a larger portion of its revenue after accounting for the direct costs associated with production or service delivery.

Overall, the steady improvement in American Airlines Group's gross profit margin signals a positive financial performance trajectory, indicating increasing profitability and potentially enhanced financial stability.