American Airlines Group (AAL)
Pretax 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 1,154,000 | 391,000 | -43,000 | 692,000 | 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 |
| 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 |
| Pretax margin | 2.15% | 0.75% | -0.08% | 1.36% | 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% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,154,000K ÷ $53,657,000K
= 2.15%
American Airlines Group's pretax margin has shown a volatile trend over the past few years. It experienced significant declines in the margins from March 2020 to June 2021, reaching its lowest point of -85.43% in March 2021. However, there has been a gradual improvement since then, with the pretax margin moving into positive territory by December 2022.
The company's pretax margin turned positive at 0.39% by the end of December 2022, and it continued to strengthen in the subsequent periods, reaching 6.80% by June 2023. However, there was a slight dip in the pretax margin to 4.14% by September 2023, before climbing back up to 2.23% by December 2023.
In the most recent periods reported, American Airlines Group's pretax margin has remained relatively stable, ranging from 1.36% in March 2024 to 2.15% by December 2024. This indicates a more favorable financial performance compared to the earlier years when the company incurred significant losses.
Overall, American Airlines Group has shown resilience in improving its pretax margin, moving from negative figures to positive percentages in the latter part of the period under review. Continued monitoring of this metric will be crucial to assess the company's profitability and operational efficiency.
Peer comparison
Dec 31, 2024