China Eastern Airlines Corporation Limited or Allegion plc: Who Manages SG&A Costs Better?

Managing SG&A Costs: Allegion plc vs. China Eastern Airlines

In the competitive world of business, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Allegion plc, a global leader in security products, and China Eastern Airlines, one of the major airlines in China, present a fascinating case study in cost management from 2014 to 2023.

Allegion plc has consistently maintained lower SG&A expenses, averaging around 640 million annually, showcasing a disciplined approach to cost management. In contrast, China Eastern Airlines, with an average of 3.5 billion, reflects the high operational costs typical in the airline industry. Notably, in 2023, China Eastern's SG&A expenses surged to 7.3 billion, a significant increase from previous years, possibly due to post-pandemic recovery efforts.

This comparison highlights the diverse challenges faced by different industries in managing operational costs, offering valuable insights for investors and business strategists.