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. |
|
Investopedia explains '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. |
Related Definitions
Articles Of Interest
-
Save On Planes, Trains And Automobiles
Getting to, and around, your travel destination doesn't need to break the bank. -
Drawbacks Of Travel Reward Programs
These nearly universal loyalty programs can have handy perks, but they're not a free ride. -
Globetrotting On A Budget
Don't let a shoestring budget trip-up your vacation plans. -
Travel Smart By Planning How You'll Pay
With a little pre-trip planning, you can avoid being stranded without adequate funds. -
Is That Airline Ready For Lift-Off?
Break through the clouds to see if these stocks will rocket higher, or crash and burn. -
What is a monopoly?
Monopoly is a fun family game, but in real life, a monopoly can be dangerous to a country's economy. A monopoly occurs when an industry or sector has only one producer of goods or retailer for ... -
How Inflation Has Affected Transportation Prices
Getting around today is less expensive than it was 10 years ago, and this downtrend shows no signs of stopping. -
5 Ways To Invest In Travel And Tourism
Discover five areas of the travel and tourism market that could prove lucrative from an investing standpoint. -
Weighted Average Cost Of Capital (WACC)
Weighted average cost of capital may be hard to calculate, but it's a solid way to measure investment quality -
Capital Expenditures (CAPEX)
Learn more about what it costs to produce goods.