Revenue Seat Miles

AAA

DEFINITION of 'Revenue Seat Miles'

The number of miles a plane flies multiplied by the number of passenger seats available per flight. Revenue seat miles, more commonly called available seat miles, are one of the air transport traffic and capacity statistics that airlines must report to the government under section 298.61 of the U.S. Code of Federal Regulations.

INVESTOPEDIA EXPLAINS 'Revenue Seat Miles'

It is difficult to remain profitable in the airline industry, as evidenced by the chapter 11 bankruptcy filings of numerous major air carriers, including Delta, American and Northwest. Layoffs and wage cuts have plagued airline employees as airlines have struggled to deal with high operating expenses for fuel, aircraft, gate fees, pension funds and union labor contracts. Air travel also has high demand elasticity, so when customers experience a small decline in income, they will cut back significantly on air travel.

RELATED TERMS
  1. Revenue Passenger Mile - RPM

    A transportation industry metric that shows the number of miles ...
  2. Revenue Ton Mile

    A single ton of goods that is transported for one mile. Revenue ...
  3. Demand Elasticity

    In economics, the demand elasticity refers to how sensitive the ...
  4. Cyclical Industry

    A type of an industry that is sensitive to the business cycle, ...
  5. Transportation Sector

    A category of stocks relating to the transportation of goods ...
  6. Chapter 11

    Named after the U.S. bankruptcy code 11, Chapter 11 is a form ...
Related Articles
  1. Industry Handbook
    Investing Basics

    Industry Handbook

  2. Travel Tips For Keeping You And Your ...
    Insurance

    Travel Tips For Keeping You And Your ...

  3. Vacation Savings Tips
    Budgeting

    Vacation Savings Tips

  4. Save On Planes, Trains And Automobiles
    Personal Finance

    Save On Planes, Trains And Automobiles

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center