Howmet Aerospace Inc. or China Eastern Airlines Corporation Limited: Who Manages SG&A Costs Better?

Managing SG&A Costs: A Tale of Two Giants

In the competitive world of aerospace and aviation, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Howmet Aerospace Inc. and China Eastern Airlines Corporation Limited, two industry titans, showcase contrasting strategies in this domain. From 2014 to 2023, Howmet Aerospace consistently maintained lower SG&A expenses, averaging around 570 million annually, a mere 16% of China Eastern's average. Notably, in 2020, Howmet's SG&A costs plummeted to 277 million, reflecting a strategic pivot during the pandemic. Meanwhile, China Eastern's expenses fluctuated significantly, peaking at 7.25 billion in 2023, a staggering 150% increase from 2020. This disparity highlights Howmet's disciplined cost management versus China Eastern's expansive operational scale. As industries evolve, these insights underscore the importance of strategic financial stewardship in navigating economic challenges.