Selling, General, and Administrative Costs: Howmet Aerospace Inc. vs American Airlines Group Inc.

A Tale of Two Industries: Aerospace vs. Airlines

In the ever-evolving landscape of corporate expenses, Selling, General, and Administrative (SG&A) costs serve as a crucial indicator of a company's operational efficiency. This analysis juxtaposes Howmet Aerospace Inc. and American Airlines Group Inc. over a decade, from 2014 to 2023.

Aerospace Efficiency vs. Airline Volatility

Howmet Aerospace Inc. has demonstrated a consistent approach to managing SG&A expenses, with a notable peak in 2016. However, their costs have generally trended downward, reflecting a strategic focus on efficiency. In contrast, American Airlines Group Inc. has experienced more volatility, with a significant dip in 2020, likely due to the pandemic's impact on the airline industry. By 2023, American Airlines' SG&A expenses rebounded to nearly 1.8 billion, a 250% increase from the 2020 low.

This comparison highlights the distinct challenges and strategies within the aerospace and airline sectors, offering valuable insights for investors and industry analysts.