Cost Per Available Seat Mile - CASM

DEFINITION of 'Cost Per Available Seat Mile - CASM'

A common unit of measurement used to compare the efficiency of various airlines. It is obtained by dividing the operating costs of an airline by available seat miles (ASM). Generally, the lower the CASM, the more profitable and efficient the airline.

BREAKING DOWN 'Cost Per Available Seat Mile - CASM'

CASM is usually a more comprehensive measurement of airline costs, but it's still important that investors are aware of what items comprise this measurement. Many carriers exclude fuel costs from operating expenses, making the CASM an unreliable metric. Cost per available seat mile, as the name suggests, reflects the costs incurred by an airline to fly a single seat one mile.

RELATED TERMS
  1. Available Seat Miles - ASM

    A measure of an airplane's carrying capacity available to generate ...
  2. Revenue Per Available Seat Mile ...

    A unit of measurement that is used to compare the efficiency ...
  3. Revenue Seat Miles

    The number of miles a plane flies multiplied by the number of ...
  4. Discriminating Monopoly

    A single entity that charges different prices, which are not ...
  5. Revenue Ton Mile

    A single ton of goods that is transported for one mile. Revenue ...
  6. Richard H. Anderson

    Richard H. Anderson became the CEO of Delta Airlines in 2007. ...
Related Articles
  1. Markets

    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.
  2. Investing

    The Industry Handbook: The Airline Industry

    Few inventions have changed how people live and experience the world as much as the invention of the airplane. During both World Wars, government subsidies and demands for new airplanes vastly ...
  3. Investing

    Know Key Financial Data Before Betting On Airlines

    The airline industry is highly cyclical. Investors need to understand where the industry is in the cycle in order to assign appropriate valuations.
  4. Markets

    Watch Airline Stocks For Takeoff Potential (AAL, DAL)

    Airline stocks have taken a hit but they show potential for takeoff as a result of low fuel prices, reduced competition and an improving economy.
  5. Financial Advisor

    4 Reasons Why Airlines Are Always Struggling

    Why is the airline industry synonymous with ongoing losses and insolvency? We list four reasons.
  6. Markets

    Will Airlines Keep Flying High in 2016?

    Learn why the airline industry has such a unique set of variable and fixed costs that makes it very difficult to forecast its performance each year.
  7. Investing

    American Airlines P/E Ratio: A Quick Analysis (AAL, DAL)

    A quick analysis of American Airlines Group Inc., using the ubiquitous price-to-earnings ratio.
  8. Markets

    The Incredible Shrinking U.S. Airline Industry

    The U.S. hasn’t had a new scheduled passenger airline since 2007. Some blame a lack of financing while others say government approval has gotten too tough.
  9. 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.
  10. 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.
RELATED FAQS
  1. 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 >>
  2. Which countries make up the majority of the global airline sector?

    Learn more about the global airline industry and major markets around the world for air travel. Find out more about competitive ... Read Answer >>
  3. How does investing in the airline industry differ for privately versus government ...

    Explore the investment opportunities presented by public and private airlines. Learn more about some of the risks and benefits ... Read Answer >>
  4. What are the risks of investing in smaller regional airlines versus national or international ...

    Discover the risks involved in investing in regional airlines, including those caused by smaller balance sheets and more ... Read Answer >>
  5. Why should an investor include the airlines sector in his or her portfolio?

    Learn more about the competitive environment airlines experience and why investors may benefit from investing in airlines ... Read Answer >>
  6. 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 >>
Hot Definitions
  1. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  2. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  3. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  4. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  5. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
  6. Weighted Average Life - WAL

    The average number of years for which each dollar of unpaid principal on a loan or mortgage remains outstanding. Once calculated, ...
Trading Center