Southwest Airlines Co. or Allegion plc: Who Manages SG&A Costs Better?

Managing SG&A Costs: A Tale of Two Companies

In the competitive world of business, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Allegion plc and Southwest Airlines Co. offer a fascinating study in contrasts over the past decade. From 2014 to 2023, Allegion plc maintained a steady increase in SG&A expenses, growing by approximately 64% from 2014 to 2023. In contrast, Southwest Airlines Co. experienced a more volatile journey, with a significant spike in 2016, reaching a peak in 2023 with a 93% increase from 2014. This fluctuation reflects the airline industry's sensitivity to external factors like fuel prices and economic downturns. Allegion's more consistent growth suggests a stable approach to cost management, possibly due to its focus on security products. As businesses navigate the complexities of cost management, these insights provide valuable lessons in strategic financial planning.