Cost Per Available Seat Mile - CASM

AAA

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.

INVESTOPEDIA EXPLAINS '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. Robert Crandall

    A former president, CEO and chairman of AMR Corporation, the ...
  2. Revenue Passenger Mile - RPM

    A transportation industry metric that shows the number of miles ...
  3. Econometrics

    The application of statistical and mathematical theories to economics ...
  4. Economics

    A social science that studies how individuals, governments, firms ...
  5. Dow Jones Transportation Average ...

    A price-weighted average of 20 transportation stocks traded in ...
  6. Soft Metrics

    A slang term for intangible indicators used to value a startup ...
Related Articles
  1. What is the average salary for an accountant?
    Personal Finance

    What is the average salary for an accountant?

  2. How do I calculate earnings per share ...
    Fundamental Analysis

    How do I calculate earnings per share ...

  3. Credit Cards With Travel Insurance
    Insurance

    Credit Cards With Travel Insurance

  4. Flight Insurance Can Take The Worry ...
    Insurance

    Flight Insurance Can Take The Worry ...

comments powered by Disqus
Hot Definitions
  1. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  2. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  3. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  4. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  5. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  6. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
Trading Center