American Airlines Group (AAL)

Net profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	822,000	127,000	-1,993,000	-8,885,000	1,686,000
Revenue	US$ in thousands	50,346,000	46,971,000	28,078,000	16,086,000	44,641,000
Net profit margin		1.63%	0.27%	-7.10%	-55.23%	3.78%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $822,000K ÷ $50,346,000K
= 1.63%

American Airlines Group Inc's net profit margin has fluctuated significantly over the past five years. In 2019, the net profit margin was relatively healthy at 3.68%, indicating that the company retained approximately 3.68% of its revenue as profit after accounting for all expenses. However, there was a sharp decline in 2020, with the net profit margin plummeting to -51.25%, implying that the company incurred a significant loss relative to its revenue.

The situation improved slightly in 2021, when the net profit margin was -6.67%, but remained negative. In 2022, there was a small increase to 0.26%, indicating a return to profitability, albeit at a low level. The most recent data for 2023 shows a further improvement, with the net profit margin reaching 1.56%.

Overall, the trend suggests that American Airlines Group Inc has faced challenges in generating profits in recent years, with the company experiencing losses and only recently returning to a positive net profit margin. This indicates that the company may have been struggling with cost management, revenue generation, or other operational inefficiencies that have affected its bottom line.