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neurodiverseotter t1_j0yhhio wrote

Ist this just AA or does it include their subsidiaries as well?
A lot of companies rent space, tools or vehicles from their own subsidiaries to artificially reduce net profit and save taxes.

Also, is there no marketing in the budget or is it included in the "other" section?

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dinosuitgirl t1_j0yjf31 wrote

Would love to see salaries broken down into corporate and operational 🤔

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BoredGeek1996 t1_j0yky1v wrote

If automation can reduce salaries, it would be the logical direction to take from a profitability perspective. The whole sector is ripe for automation, from cabin crews to customer service staff. And people wonder why birthrates are declining. We live in times where employees can easily lose their incomes.

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Tiabaja t1_j0z6gyn wrote

What does "other" consist of?

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eva01beast t1_j0z6jse wrote

This must be the third airline post I've seen by you and all I can conclude is that either there isn't much money in operating airlines, or these companies are indulging in Hollywood levels of accounting.

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underlander t1_j0zhnqp wrote

why are the anchor points different widths

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cred_it t1_j0zji42 wrote

I heard a while back that a significant percentage (even a majority) of AA’s profit comes from rewards program activity (selling points). Where is that captured in this chart?

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Tiligul t1_j0znbpe wrote

I don't know if it's just me, but this spam with data on how companies "make money" is making me want to unfollow this sub.

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pk10534 t1_j0zo8mw wrote

Replying to eva01beast (#982,443)

There really just isn’t that much money in the airline industry. It’s just expensive any way you look at it, from landing fees to repainting planes to fuel costs to plane orders…it’s an industry that operates on a very thin margin. Airlines can make more money selling miles and loyalty points to companies like Amex or Hertz than they can flying people in economy. And without first class or business class subsidizing the rest of the plane, prices would skyrocket or most airlines would have to go bankrupt.

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Obvious_Chapter2082 t1_j0zqwdt wrote

Replying to eva01beast (#982,443)

Most of them do operate on small margins, it’s why they’re one of the first industries bailed out during recessions. But they also have a lot of fixed assets, so they report a lot of non-cash expenses through depreciation

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vicvinegarboiling t1_j0zvqsd wrote

Replying to dinosuitgirl (#980,728)

The corporate side of it would barely be worth showing on this chart. Major airlines have a heavily unionized workforce with over 100k employees. The highest paid employees by far, other than the most senior execs, are pilots. Pilots, especially mainline pilots, get paid very well and have extremely strong unions. I’d say about half of the total salary line goes to pilots. Then the rest will be spread between flight attendants, mechanics, ground crew etc. a small portion will be corporate but it is definitely not the industry to be in if you are looking for large corporate salaries, and given the size of corporate employees compared to the entire org it is a small fraction of the total payroll of the business.

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theftnssgrmpcrtst t1_j10ge40 wrote

Honestly way slimmer margin than I expected - is that typical for airlines or is this a post-COVID thing?

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greatdrams23 t1_j10lpv4 wrote

37 million in special items. I think we all know what that means for an international company.

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pompatous665 t1_j10uax3 wrote

Why does the “Othet Expenses” - “Interest Expenses” line increase?

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vicvinegarboiling t1_j11bapu wrote

Replying to [deleted] (#985,804)

This should all be pretty much public info for American. Exec pay should be easily googleable as well as average pilot pay and number of pilots, similar info should be available for other work groups. Whether you think they are overpaid is a separate matter but corporate salaries don’t make up a significant enough portion of salaries to warrant breaking it out here.

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blbrd30 t1_j11qs3u wrote

Uh

Airlines are only majorly profitable cause of their points programs that are technically not the same company

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JamminOnTheOne t1_j11uz8q wrote

Replying to [deleted] (#980,659)

Operating expenses include all ongoing expenses, including marketing, etc. The only expenses that aren’t included are capital expenses (eg, buying planes), which aren’t shown directly on an income statement (the depreciation is an operating expense, not the purchase price).

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scott_steiner_phd t1_j12676l wrote

Replying to [deleted] (#985,804)

> I know for a fact the CEO of my airline made more than the whole department of cabin crew and that's just one guy so yeah forgive me for being skeptical 🤨

American's CEO had a base salary salary of $1.3 million , with potential bonuses up to $2.6 million cash, plus and additional stock grants. He was paid a total of $10.4 million in compensation in 2020, the most recent year I could find, with the large majority of that being stock grants that wouldn't show up on the balance sheet (or this chart.)

Edit more recent source: in 2021 he was paid a total of $766,000 cash and $4.2M equity. His $766,000 would not be visible on this chart.

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Rickwh t1_j12sip0 wrote

What about customer satisfaction? You may have included in, I truly wouldn't be able to tell, for it would be marginally small compared to the other graphics on this chart.

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comeberza t1_j13gm85 wrote

We tend to think about big companies like cash grabbing monsters with ever growing profits and most big companies have margings so tight that a little change in regulation, taxes or market trends can basically turn their numbers red. The biggest supermarket in my country operates with 1 to 2 % revenue and people have the idea that they mark up their products

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