American Airlines Group (AAL)
Pretax margin
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 1,122,000 | 2,100,000 | 3,448,000 | 2,288,000 | 185,000 | -2,016,000 | -2,468,000 | -3,062,000 | -2,549,000 | -4,167,000 | -7,468,000 | -10,136,000 | -11,453,000 | -8,073,000 | -4,421,000 | -880,000 | 2,255,000 | 2,080,000 | 2,019,000 | 1,893,000 |
| Revenue (ttm) | US$ in thousands | 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 | 44,938,000 | 44,563,000 | 44,230,000 | 43,922,000 |
| Pretax margin | 2.23% | 4.14% | 6.80% | 4.56% | 0.39% | -4.66% | -6.35% | -9.31% | -9.08% | -18.00% | -42.70% | -85.43% | -69.47% | -33.96% | -13.58% | -2.05% | 5.02% | 4.67% | 4.56% | 4.31% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,122,000K ÷ $50,347,000K
= 2.23%
Based on the data provided for American Airlines Group Inc, the pretax margin has shown fluctuations over the past eight quarters. In Q4 2023, the pretax margin stood at 2.12%, indicating a moderate profitability level. The pretax margin had improved from the previous quarter's 3.97% but was lower than the peaks seen in Q2 and Q3 2023, where it reached 6.52% and 4.38%, respectively.
Compared to the same quarter a year ago, the company has shown significant progress as Q4 2022 reported a much lower pretax margin of 0.38%. Additionally, in the earlier quarters of 2022, American Airlines Group Inc experienced negative pretax margins, indicating operational challenges and potential inefficiencies.
Overall, the upward trend in the pretax margin from negative figures in 2022 to positive values in 2023 suggests that the company has made improvements in its operating efficiency and cost management. However, the recent decrease in Q4 2023 compared to the previous quarter indicates a need for continued monitoring and strategic decision-making to sustain and improve profitability in the future.
Peer comparison
Dec 31, 2023