United Airlines Holdings, Inc. or AerCap Holdings N.V.: Who Manages SG&A Costs Better?

SG&A Cost Management: A Tale of Two Giants

In the competitive world of aviation and leasing, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, AerCap Holdings N.V. and United Airlines Holdings, Inc. have showcased contrasting strategies in this domain. From 2014 to 2023, AerCap's SG&A expenses have remained relatively stable, averaging around 340 million annually, with a notable increase of 55% from 2014 to 2023. In contrast, United Airlines has seen a more volatile trend, with expenses peaking at nearly 2 billion in 2023, marking a 44% increase from 2014. The pandemic year of 2020 saw a significant dip for United, with expenses dropping to 459 million, highlighting the industry's vulnerability to global events. As the aviation sector evolves, these insights into cost management strategies offer valuable lessons for stakeholders aiming to optimize operational efficiency.