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. Economics

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

    A price-weighted average of 20 transportation stocks traded in ...
  5. Econometrics

    The application of statistical and mathematical theories to economics ...
  6. Soft Metrics

    A slang term for intangible indicators used to value a startup ...
Related Articles
  1. Savings

    Best (And Worst) Places To Change Money In Vegas

    Skip the booths at the airport and find an ATM when you want to exchange currency. Or try to use your credit card. Another good source: casinos!
  2. Charts & Patterns

    Why These Could Be 2015's 10 Best Biotech Stocks

    A quick look at a 10 biotech companies that are poised to deliver for shareholders in 2015.
  3. Mutual Funds & ETFs

    How To Build A Bond Ladder?

    Bond laddering is a strategy used when building a portfolio: an investor can spread out interest rate risk and create a stream of cash flows for income.
  4. Fundamental Analysis

    What is a Null Hypothesis?

    In statistics, a null hypothesis is assumed true until proven otherwise.
  5. Savings

    How To Save On Currency Exchanges in NYC

    You will get the best exchange rate in New York, but it's good to arrive in the U.S. with some dollars in your pocket. Here are tips for tourists.
  6. Savings

    Best (And Worst) Ways To Change Money In Europe

    Which are the cheapest– and most costly – ways to exchange money when you're in Europe? See if you made the right choices on your last trip.
  7. Charts & Patterns

    Why These Could Be 2015's 10-Best Media Stocks

    A list of top-tier and speculative media stocks for 2015.
  8. Personal Finance

    Airbnb or Hotel: Which Is Better for Vegas Visitors?

    Airbnb will likely cost you a lot less than a hotel. Here's a look at the pluses and minuses – and some specific hotel vs. Airbnb comparisons.
  9. Personal Finance

    The Cheapest Times To Fly To New York City

    Summer is the costliest season to travel to the Big Apple from abroad. You'll save money in the colder months, as long as you avoid the holidays.
  10. Personal Finance

    When Is It Cheaper To Fly To Europe?

    When can you fly to Europe for the lowest fares? Hint: You'll need gloves and a scarf.

You May Also Like

Hot Definitions
  1. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  2. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  3. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  4. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  5. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
  6. Absorption Costing

    A managerial accounting cost method of expensing all costs associated with manufacturing a particular product. Absorption ...
Trading Center