American Airlines Group (AAL)

Operating 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
Operating income (ttm)	US$ in thousands	2,614,000	2,136,000	1,824,000	2,603,000	3,034,000	3,760,000	4,913,000	3,767,000	1,606,000	-556,000	-891,000	-1,467,000	-1,059,000	-2,794,000	-6,260,000	-9,187,000	-10,421,000	-7,177,000	-3,498,000	141,000
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
Operating profit margin		4.87%	4.08%	3.54%	5.13%	6.03%	7.41%	9.68%	7.51%	3.42%	-1.28%	-2.29%	-4.46%	-3.77%	-12.07%	-35.79%	-77.43%	-63.21%	-30.19%	-10.74%	0.33%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $2,614,000K ÷ $53,657,000K
= 4.87%

The operating profit margin of American Airlines Group experienced significant fluctuations over the period from March 31, 2020, to December 31, 2024.

Initially, the operating profit margin was positive at 0.33% as of March 31, 2020, but deteriorated rapidly in the subsequent quarters, turning negative in June 2020 and reaching its lowest point at -77.43% by March 31, 2021. This sharp decline indicates that the company's operating expenses were outpacing its revenue generation during this period.

From March 31, 2021, to June 30, 2022, the operating profit margin continued to be in negative territory, although there were some fluctuations. However, starting from December 31, 2022, the trend began to improve, with the operating profit margin turning positive at 3.42% and steadily increasing to reach 4.87% by December 31, 2024.

The positive trend in the later quarters suggests that American Airlines Group was able to better manage its operating costs relative to its revenue, leading to improved profitability. This turnaround indicates potential efforts to streamline operations, reduce expenses, or increase revenue streams to enhance the company's financial performance.

Overall, the analysis of the operating profit margin highlights the challenges faced by American Airlines Group during the initial period, followed by a gradual recovery and eventual improvement in profitability towards the end of the period under consideration.