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cyberentomology OP t1_isu2crk wrote

Data Source: AAL 22Q2 Financial Results (July 21, 2022)

Tool: SankeyMatic

Some Interesting Observations:

  • They're getting jet fuel for only 4 bucks a gallon... Hell of a deal.
    • Fleet-wide, they're averaging about 58 passenger miles per gallon. That's pretty damned efficient...
  • Average annual (loaded) payroll per FTE is about $100K.
  • Revenue is about 18 cents per passenger-mile. They keep less than 1 cent of that.
  • No dividends, they've got a few billion in debt to pay down.
  • Taxes! The government is making more money on the airline than the airline is making on the airline.
    • $154M in federal income tax
    • $210M in federal payroll tax
    • $250M in federal excise tax on jet fuel (24.4 cents/gallon) -- this is largely what funds the FAA
    • State Taxes on jet fuel are unknown but state jet fuel tax per gallon in their US hubs:
      • Texas (DFW) 20 cents
      • Illinois (ORD): 1.1 cents
      • California (LAX): 2.0 cents
      • North Carolina (CLT): none (tiny inspection fee only)
      • Pennsylvania (PHL): 1.2 cents
      • DC (DCA): 23.5 cents
      • New York (LGA): 6.5 cents

Q3 results are due out any day now.

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tuctrohs t1_isv0o9s wrote

It's interesting that they spend more on fuel than any other expense. And much more than on aircraft. That means that companies making more efficient aircraft should be able to sell them easily.

Note that the government's tax revenue isn't profit. They need to run the FAA among other things. Comparing that to profit is like calling the airline's revenue profit, and you illustrate that those numbers are vastly different.

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cyberentomology OP t1_isve0fg wrote

Yeah, a 5% efficiency gain from a new aircraft is huge and absolutely worth retiring old (and paid for) hardware.

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cyberentomology OP t1_isve44m wrote

No such thing as profit to the government. They don’t produce anything, they only consume. Rent seeking at its finest. At least the airline gets something in return for it.

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