Revenue Passenger Mile - RPM

DEFINITION of 'Revenue Passenger Mile - RPM'

A transportation industry metric that shows the number of miles traveled by paying passengers. Revenue passenger miles are calculated by multiplying the number of paying passengers by the distance traveled. For example, an airplane with 100 passengers that flies 250 miles has generated 25,000 RPMs.

BREAKING DOWN 'Revenue Passenger Mile - RPM'

Revenue passenger miles are the backbone of most transportation metrics. RPMs are often compared to the available seat miles (ASM), which show the total number of passenger miles that could be generated in order to determine the amount of revenue that comes in compared to the maximum amount.