Revenue Passenger Mile - RPM

AAA

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 TERMS
  1. Revenue Per Available Seat Mile ...

    A unit of measurement that is used to compare the efficiency ...
  2. Cost Per Available Seat Mile - ...

    A common unit of measurement used to compare the efficiency of ...
  3. Transportation Sector

    A category of stocks relating to the transportation of goods ...
  4. Revenue Seat Miles

    The number of miles a plane flies multiplied by the number of ...
  5. SENTRI

    This U.S. program grants pre-approved travelers access to a faster ...
  6. TSA Pre

    This program allows travelers deemed low-risk by the Transportation ...
RELATED FAQS
  1. No results found.
Related Articles
  1. Budgeting

    Drawbacks Of Travel Reward Programs

    These nearly universal loyalty programs can have handy perks, but they're not a free ride.
  2. Personal Finance

    Save On Planes, Trains And Automobiles

    Getting to, and around, your travel destination doesn't need to break the bank.
  3. Budgeting

    Globetrotting On A Budget

    Don't let a shoestring budget trip-up your vacation plans.
  4. Options & Futures

    Travel Smart By Planning How You'll Pay

    With a little pre-trip planning, you can avoid being stranded without adequate funds.
  5. Active Trading

    Is That Airline Ready For Lift-Off?

    Break through the clouds to see if these stocks will rocket higher, or crash and burn.
  6. Investing

    What's a Debit Note?

    A debit note is a document used by a seller to inform a purchaser of a dollar amount owed. As the name indicates, it is a note from the seller that a debit has been made to the purchaser’s account. ...
  7. Professionals

    What does C-Suite Mean?

    C-Suite is a slang term used to describe the highest level senior executives of a corporation. This is the decision-making, power center of a company. These individuals are usually paid well, ...
  8. Stock Analysis

    What’s The Best Airline Stock In the Industry?

    With many airlines forced to seek bankruptcy protection, Southwest Airlines stands out as having consistently remained profitable throughout its history.
  9. Investing

    What's a Monopolistic Market?

    A monopolistic market has a significant number of characteristics of a pure monopoly. Though there may be more than one supplier, the market has high prices, suppliers tightly control availability ...
  10. Professionals

    What's Human Capital?

    Human capital is a company asset, but it’s not listed on the balance sheet. Human capital is all of the creative skills and knowledge embodied in the employees of a company -- skills that bring ...

You May Also Like

Hot Definitions
  1. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  2. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  3. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  4. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  5. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
  6. Investment Grade

    A rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such ...
Trading Center