Available Seat Miles - ASM

AAA

DEFINITION of 'Available Seat Miles - ASM'

A measure of an airplane's carrying capacity available to generate revenue. Available seat miles refers to how many seat miles are actually available for purchase on an airline. Seat miles are calculated by multiplying the available seats for a given plane by the number of miles that plane will be flying for a given flight.

INVESTOPEDIA EXPLAINS 'Available Seat Miles - ASM'

ASM is simply a measure of a flight's revenue-generating abilities based upon traffic. For investors analyzing airlines, ASM is a very important metric in deciding which airlines are best at generating revenue from the availability of seats to customers. If all of the seats on the plane are not sold, then the ASM of the airline is operating at below capacity. Long instances of unavailable seats on an airline can cost an airline millions of dollars.

RELATED TERMS
  1. Commercial Visa

    A government-issued document that allows noncitizens to enter ...
  2. Transportation Sector

    A category of stocks relating to the transportation of goods ...
  3. Elastic

    A situation in which the supply and demand for a good or service ...
  4. Variable Cost

    A corporate expense that varies with production output. Variable ...
  5. Cyclical Industry

    A type of an industry that is sensitive to the business cycle, ...
  6. Revenue Seat Miles

    The number of miles a plane flies multiplied by the number of ...
Related Articles
  1. Investing Basics

    Industry Handbook

    In this feature, we take an in-depth look at the various techniques that determine the value and investment quality of companies from an industry perspective.
  2. Insurance

    Travel Tips For Keeping You And Your Money Safe

    Take precautions to avoid being taken advantage of on your vacation.
  3. Forex Education

    The Impact Of Currency Conversions

    Will a rising or falling dollar hurt you or your company? In this article we explore the impact of currency converisons on consumers, comanies, and countries.
  4. Home & Auto

    The Advantages Of Vacation Insurance

    With a few simple policy additions you can protect your holiday plans from being ruined.
  5. Personal Finance

    7 Ways To Save On Summer Getaways

    Find out how to have a fun and budget-friendly summer adventure.
  6. Options & Futures

    Travel Smart By Planning How You'll Pay

    With a little pre-trip planning, you can avoid being stranded without adequate funds.
  7. Personal Finance

    Where To Get The Cheapest Airline Tickets

    We test out a range of ways to get cheap tickets for your next flight.
  8. Savings

    The 5 Smartest Ways To Use Your Airline Miles

    How to travel and save money by using airline miles.
  9. Personal Finance

    Visit Latin America's Safest, Cheapest Countries

    Tourism is surging in Latin America. Its safest countries rank higher on the Global Peace Index than the United States and have a lower cost of living.
  10. Budgeting

    Bring Money! Most Expensive Countries For Tourists

    If you've longed to see the Alps, Norway's fiords, Tivoli Gardens or the Great Barrier Reef, how to manage visiting the world's 4 priciest countries.

You May Also Like

Hot Definitions
  1. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  2. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  3. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  4. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  5. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  6. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
Trading Center