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.

BREAKING DOWN '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. Revenue Seat Miles

    The number of miles a plane flies multiplied by the number of ...
  2. Cost Per Available Seat Mile - ...

    A common unit of measurement used to compare the efficiency of ...
  3. Revenue Per Available Seat Mile ...

    A unit of measurement that is used to compare the efficiency ...
  4. Revenue Passenger Mile - RPM

    A transportation industry metric that shows the number of miles ...
  5. ABC Agreement

    An agreement made between a purchasing member with a seat on ...
  6. Revenue Ton Mile

    A single ton of goods that is transported for one mile. Revenue ...
Related Articles
  1. Personal Finance

    Get a More Comfortable Seat in Coach for Less

    Try these four strategies to get a better seat in economy class the next time you fly.
  2. Managing Wealth

    8 Ways To Fly First Class For Cheap

    Slide into one of those first class (or business class) seats for cheap.
  3. Personal Finance

    Is Your Loyalty Paying Off?

    Not always. But here is the way to make the best of an increasingly shrinking rewards universe.
  4. Investing

    Southwest Reports October Traffic (LUV)

    Southwest reported its October 2016 traffic statistics this morning.
  5. Retirement

    Best Ways for Retirees to Use Up Airline Miles

    It’s easier than ever to earn frequent flyer miles, but redeeming them can be tricky. Some tips on how to do it.
  6. Investing

    JetBlue Reports Surprisingly Strong June Traffic (JBLU, LUV)

    With the summer travel season in full swing, JetBlue Airways (NASDAQ: JBLU) outperformed key rivals Southwest Airlines and Virgin America in June. Revenue passenger miles rose 8.8% to 3.54 billion. ...
  7. Investing

    Who Are American Airlines’ Main Competitors? (DE, JBLU)

    Understand what makes American Airlines a good company and what sets it apart in the industry. Learn about the top four competitors to American Airlines.
  8. Personal Finance

    Should You Hoard Your Miles?

    Here's who should hoard airline miles (and who shouldn't). And how to use your hoarded miles strategically.
  9. Personal Finance

    How To Travel During Holidays With Frequent-Flier Miles

    Frequent flier miles can be a great boon for your budget. Learn how many you need to travel over the holidays.
RELATED FAQS
  1. What is an available seat mile in the airline industry?

    Learn how to calculate and leverage available seat miles as a component metric of a commercial airline's operational health ... Read Answer >>
  2. How can I use the load factor as an indicator for the profitability of the airline ...

    Learn more about how investors and airlines use load factor. Find out about some of the major expenses of airlines and how ... Read Answer >>
  3. What does the term 'revenue passenger mile' mean for an airline?

    Learn more about what revenue passenger miles are, why they matter to airlines and why they should matter to potential investors. Read Answer >>
  4. What is an ABC Agreement?

    Brokerage and other financial organizations usually purchase seats or memberships at the New York Stock Exchange (NYSE) for ... Read Answer >>
  5. Can an investor use leveraged ETFs to invest in the airline sector?

    Explore the availability of leveraged ETFs that invest in the airline industry and learn other ways to leverage airline industry ... Read Answer >>
  6. What does membership in the New York Stock Exchange entail, and why is it known as ...

    Owning a seat on the New York Stock Exchange (NYSE) enables a person to trade on the floor of the exchange, either as an ... Read Answer >>
Trading Center