Who Optimizes SG&A Costs Better? PACCAR Inc or Delta Air Lines, Inc.

Optimizing SG&A Costs: A Tale of Two Giants

In the competitive world of business, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. This analysis compares PACCAR Inc and Delta Air Lines, Inc., two industry leaders, from 2014 to 2024. PACCAR, a heavyweight in the automotive sector, consistently maintained lower SG&A expenses, averaging around 630 million annually. In contrast, Delta Air Lines, a titan in the aviation industry, averaged nearly four times higher at approximately 2.5 billion. Notably, Delta's SG&A expenses peaked in 2019, reaching 3.6 billion, before plummeting to 582 million in 2020, likely due to the pandemic's impact. Meanwhile, PACCAR's expenses remained relatively stable, with a slight increase in 2023. This data highlights PACCAR's efficiency in cost management, while Delta's fluctuations suggest a more volatile approach. Understanding these trends offers valuable insights into each company's strategic priorities and operational resilience.