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. Revenue Per Available Seat Mile ...

    A unit of measurement that is used to compare the efficiency ...
  3. ABC Agreement

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

    A single ton of goods that is transported for one mile. Revenue ...
  5. Airline Industry ETF

    A sector exchange-traded fund (ETF) that invests in stocks of ...
  6. Transferable Points Programs (UAL)

    With transferable points programs, customers earn points by using ...
Related Articles
  1. 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. ...
  2. Investing

    Southwest Reports October Traffic (LUV)

    Southwest reported its October 2016 traffic statistics this morning.
  3. 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.
  4. 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.
  5. Investing

    United Updates Revenue Guidance, December Metrics

    United Continental Holdings (NYSE: UAL) finished off 2016 with improvements in several key operational metrics. In December, revenue passenger miles (RPMs) rose by 2.6% on a year-over-year basis, ...
  6. Investing

    Virgin America Reports October Traffic (VA)

    A look at Virgin America’s October preliminary operational results.
  7. Insights

    United Reports November Traffic, Updates Guidance (UAL)

    United released its November traffic figures and updated its guidance for the fourth quarter of 2016.
  8. Investing

    Brexit Fallout: Delta Cuts Capacity on U.K. Routes

    Delta Air Lines (NYSE: DAL) reported better-than-expected second-quarter results on Thursday morning, sending the stock up close to 4% in early trading. Planned cost cuts from reducing the capacity ...
  9. Investing

    Key Financial Ratios to Analyze Airline Companies

    Examine some of the most important financial ratios and performance metrics investors use to evaluate companies in the airline industry.
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. 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 >>
  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. 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 >>
  5. How much revenue in the airline industry comes from business travelers compared to ...

    Learn more about what business and leisure travelers contribute to airline revenue and profits. Find out how airlines remain ... Read Answer >>
  6. What dividend yield is typical for the airline sector?

    Learn what dividend yield is typical for the airline sector. The airline business tends to be victim to economic growth and ... Read Answer >>
Trading Center