American Airlines Group (AAL)

Interest coverage

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 interest and tax (EBIT) (ttm) US$ in thousands 3,266,000 4,257,000 5,567,000 4,327,000 2,147,000 -118,000 -593,000 -1,169,000 -748,000 -2,458,000 -5,895,000 -8,795,000 -10,226,000 -6,957,000 -3,361,000 201,000 3,350,000 3,178,000 3,095,000 2,957,000
Interest expense (ttm) US$ in thousands 2,144,000 2,157,000 2,119,000 2,039,000 1,962,000 1,898,000 1,875,000 1,893,000 1,801,000 1,709,000 1,573,000 1,341,000 1,227,000 1,116,000 1,060,000 1,081,000 1,095,000 1,098,000 1,076,000 1,064,000
Interest coverage 1.52 1.97 2.63 2.12 1.09 -0.06 -0.32 -0.62 -0.42 -1.44 -3.75 -6.56 -8.33 -6.23 -3.17 0.19 3.06 2.89 2.88 2.78

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,266,000K ÷ $2,144,000K
= 1.52

The interest coverage ratio for American Airlines Group Inc has shown fluctuations over the past eight quarters. In Q3 2023, the interest coverage ratio was at 2.97, which indicates that the company generated enough operating income to cover its interest expenses 2.97 times. This was an improvement from the previous quarter, Q2 2023, where the ratio was 3.01.

However, in Q4 2022, the interest coverage ratio was considerably lower at 1.03, indicating that the company may have struggled to cover its interest expenses with its operating income during that period. The lowest points in the table were seen in Q3 2022 and Q2 2022, where the company had negative interest coverage ratios (-0.22 and -0.96, respectively), suggesting that the company's operating income was insufficient to cover its interest expenses during those quarters.

Overall, the trend in the interest coverage ratio for American Airlines Group Inc has been mixed, with some quarters showing strong coverage and others indicating potential financial challenges in meeting interest obligations. It will be important to monitor this ratio in future periods to assess the company's ability to service its debt obligations effectively.


Peer comparison

Dec 31, 2023


See also:

American Airlines Group Interest Coverage (Quarterly Data)