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. Airbnb Brings P2P Markets to Hotel Industry
    Economics

    Airbnb Brings P2P Markets to Hotel Industry

  2. Hotel Disruptor: Airbnb's Sharing Economy ...
    Economics

    Hotel Disruptor: Airbnb's Sharing Economy ...

  3. Which leverage ratios are most useful ...
    Fundamental Analysis

    Which leverage ratios are most useful ...

  4. How is it possible for a company to ...
    Fundamental Analysis

    How is it possible for a company to ...

Hot Definitions
  1. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  2. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  5. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  6. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
Trading Center