American Airlines Group (AAL)

Gross profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Gross profit (ttm)	US$ in thousands	17,805,000	16,329,000	15,523,000	15,352,000	15,376,000	15,850,000	15,781,000	14,362,000	12,062,000	9,731,000	7,715,000	4,782,000	2,180,000	4,742,000	759,000	-2,561,000	357,000	7,519,000	14,158,000	21,374,000
Revenue (ttm)	US$ in thousands	53,657,000	52,300,000	51,598,000	50,771,000	50,347,000	50,719,000	50,737,000	50,184,000	46,971,000	43,308,000	38,838,000	32,876,000	28,077,000	23,149,000	17,489,000	11,865,000	16,486,000	23,772,000	32,566,000	42,883,000
Gross profit margin		33.18%	31.22%	30.08%	30.24%	30.54%	31.25%	31.10%	28.62%	25.68%	22.47%	19.86%	14.55%	7.76%	20.48%	4.34%	-21.58%	2.17%	31.63%	43.47%	49.84%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $17,805,000K ÷ $53,657,000K
= 33.18%

The gross profit margin of American Airlines Group has shown significant fluctuations over the past few years. During the period from March 31, 2020, to December 31, 2020, the gross profit margin declined sharply from 49.84% to 2.17%, indicating a decrease in the profitability of the company's core operations.

However, the gross profit margin improved in the subsequent quarters, with fluctuations in the range of single digits until June 30, 2021. During March 31, 2021, the company experienced a negative gross profit margin of -21.58%, suggesting that the cost of goods sold exceeded the revenue generated from sales during that period.

From June 30, 2021, to December 31, 2024, the gross profit margin generally showed an increasing trend, reaching a peak of 33.18% by December 31, 2024. This improvement indicates better control over the cost of goods sold relative to revenue, contributing to higher profitability for American Airlines Group.

Overall, the analysis of the gross profit margin highlights the company's efforts to enhance operational efficiency and manage costs effectively to improve profitability over time. Investors and stakeholders may monitor this ratio to assess the company's performance in generating profits from its core business activities.