AALCAUTIOUS

Gross Margin

26.0%

Higher than 40% of Industrials sector peers

Updated 1926h ago

Sector Performance

40th percentile

AAL

26.0%

Sector Median

29.0%

Sector Avg

662.6%

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Deep Analysis

Gross margin measures the percentage of revenue left after subtracting the cost of goods sold, showing how much a company earns from each dollar of sales before other expenses.

American Airlines’s current gross margin of 26.0% sits below the sector median of 29.8%, placing it in the 29th percentile among its Industrials peers. The metric has been perfectly stable over the last eight quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%. A below-median margin combined with zero movement indicates the company is not gaining pricing power or cost efficiency relative to competitors, which heightens investment risk. This sustained underperformance supports the overall CAUTIOUS verdict, as the lack of improvement in a key profitability measure suggests limited upside potential.

Frequently Asked Questions

What does the Gross Margin tell investors about AAL?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does AAL's Gross Margin compare to its sector?

AAL's Gross Margin of 26.0% compares to a Industrials sector median of 29.0%, placing it in the 40th percentile.

Who are AAL's closest peers by Gross Margin?

The closest Industrials peers by Gross Margin include: BLDR (28.3%), BE (30.0%), SAVE (31.3%), CARR (23.3%), JOBY (22.4%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.