Cost Management Insights: SG&A Expenses for Southwest Airlines Co. and American Airlines Group Inc.

Navigating the Skies: A Tale of Two Airlines

In the competitive world of aviation, managing costs is crucial for survival and growth. Over the past decade, Southwest Airlines Co. and American Airlines Group Inc. have demonstrated contrasting strategies in handling their Selling, General, and Administrative (SG&A) expenses.

From 2014 to 2023, Southwest Airlines saw a remarkable increase in SG&A expenses, peaking at nearly 4 billion in 2023, a staggering 1,830% rise from 2014. Meanwhile, American Airlines experienced a more modest 17% increase over the same period, with expenses reaching approximately 1.8 billion in 2023.

The pandemic year of 2020 marked a significant dip for both airlines, with American Airlines' expenses dropping by 68% and Southwest's by 36%. As the industry rebounds, these figures highlight the airlines' differing approaches to cost management and their resilience in the face of global challenges.