J.B. Hunt Transport Services, Inc. or American Airlines Group Inc.: Who Manages SG&A Costs Better?

Managing SG&A Costs: A Tale of Two Giants

In the competitive world of transportation and airlines, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. J.B. Hunt Transport Services, Inc. and American Airlines Group Inc. have taken different paths in this regard over the past decade. From 2014 to 2023, J.B. Hunt consistently maintained lower SG&A expenses, averaging around 24% of American Airlines' costs. Notably, in 2020, American Airlines saw a significant dip in SG&A expenses, dropping to 36% of their 2019 levels, likely due to pandemic-related operational changes. Meanwhile, J.B. Hunt's expenses showed a steady upward trend, peaking in 2023. This comparison highlights the strategic differences in cost management between a logistics powerhouse and an airline giant. As businesses navigate economic challenges, understanding these strategies offers valuable insights into effective financial management.