American Airlines Group (AAL)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,121,000 | 186,000 | -2,548,000 | -11,453,000 | 2,256,000 |
| Revenue | US$ in thousands | 50,346,000 | 46,971,000 | 28,078,000 | 16,086,000 | 44,641,000 |
| Pretax margin | 2.23% | 0.40% | -9.07% | -71.20% | 5.05% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $1,121,000K ÷ $50,346,000K
= 2.23%
The pretax margin of American Airlines Group Inc has exhibited fluctuating trends over the past five years. In 2023, the pretax margin improved to 2.12%, indicating that the company generated $2.12 in pre-tax profit for every $100 in revenue. This represents a significant recovery from the previous year when the margin was at a lower 0.38%. However, it is important to note that the pretax margin was negative in 2021 and 2020, highlighting challenges with profitability during those periods. The highest pretax margin of 4.93% was recorded in 2019, indicating a stronger performance in generating profits before taxes. Overall, the varying pretax margin figures suggest fluctuations in the company's ability to efficiently manage operating expenses and generate profits over the years.
Peer comparison
Dec 31, 2023