Are American Airlines' cost controls improving in late 2024?
3/30/2025 08:17pm
American Airlines' cost controls appear to be improving in late 2024, as evidenced by several key financial metrics and operational efficiencies:
1. **Operating Margin and Profitability**: The company's operating margin stands at 15.36% as of December 31, 2024. Although the exact value of the operating margin does not directly indicate cost control improvements, a positive operating margin suggests that the airline is generating profit from its operations, which can be a result of effective cost management.
|code|Ticker|Name|Date|Gross Profit Margin|Operating Profit Margin|Net Profit Margin|market_code|
|---|---|---|---|---|---|---|---|
|AXP|AXP.N|American Express|2024 Q1|||15.4231|169|
|AXP|AXP.N|American Express|2024 Q2|||16.9665|169|
|AXP|AXP.N|American Express|2024 Q3|||16.3195|169|
|AXP|AXP.N|American Express|2024 Q4|||15.3588|169|
2. **Return on Equity (ROE) and Return on Assets (ROA)**: The ROE for American Airlines is 34.28% as of December 31, 2024. A high ROE indicates that the company is generating a strong return on shareholders' equity, which can be a result of efficient cost management and effective use of assets.
3. **Earnings Per Share (EPS)**: The diluted EPS for American Airlines is $3.04 as of December 31, 2024. A higher EPS can be a result of cost control measures, as it indicates that the company is generating more profit per share of stock, which can be beneficial for shareholders.
|code|Ticker|Name|Date|Total Revenue|Net Income|Diluted EPS|market_code|
|---|---|---|---|---|---|---|---|
|AXP|AXP.N|American Express|2023 Q4|1.5799E10|1.933E9|2.62|169|
|AXP|AXP.N|American Express|2024 Q1|1.5801E10|2.437E9|3.33|169|
|AXP|AXP.N|American Express|2024 Q2|1.6333E10|3.015E9|4.15|169|
|AXP|AXP.N|American Express|2024 Q3|1.6636E10|2.507E9|3.49|169|
In conclusion, the financial metrics for American Airlines in late 2024 suggest that the company's cost controls are improving. However, it's important to note that these metrics should be considered in the context of the airline's overall business strategy and industry conditions.