Revenue Seat Miles


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.

BREAKING DOWN '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.

  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. Chapter 11

    Named after the U.S. bankruptcy code 11, Chapter 11 is a form ...
  6. Available Seat Miles - ASM

    A measure of an airplane's carrying capacity available to generate ...
Related Articles
  1. Investing Basics

    Industry Handbook

    In this feature, we take an in-depth look at the various techniques that determine the value and investment quality of companies from an industry perspective.
  2. Insurance

    Travel Tips For Keeping You And Your Money Safe

    Take precautions to avoid being taken advantage of on your vacation.
  3. Budgeting

    Vacation Savings Tips

    You can enjoy your holiday without spending exorbitant amounts of money. Read on for summer budgeting tips.
  4. Personal Finance

    Save On Planes, Trains And Automobiles

    Getting to, and around, your travel destination doesn't need to break the bank.
  5. Options & Futures

    Travel Smart By Planning How You'll Pay

    With a little pre-trip planning, you can avoid being stranded without adequate funds.
  6. Mutual Funds & ETFs

    Top 4 Transportation Mutual Funds

    Discover the top-rated mutual funds in the transportation industry, and understand how investors can position these funds in their asset allocation.
  7. Chart Advisor

    Bumpy Roads Ahead In Transportation

    Investors are keeping an eye on the transportation industry. We'll take a look at the trend direction and how to trade it.
  8. Investing Basics

    What Does In Specie Mean?

    In specie describes the distribution of an asset in its physical form instead of cash.
  9. Mutual Funds & ETFs

    Top Three Transportation ETFs

    These three transportation funds attract the majority of sector volume.
  10. Investing News

    High-Speed Rail to Vegas: A Good Bet or Long Odds?

    The Chinese want to build a high-speed rail line from L.A. to Las Vegas. Can it work? Or do other attempts presage failure?
  1. What does the term 'revenue passenger mile' mean for an airline?

    A revenue passenger mile (RPM) is a major metric that airlines use to assess their performance. One RPM is one paying passenger ... Read Full Answer >>
  2. Does working capital include inventory?

    A company's working capital includes inventory, and increases in inventory make working capital increase. Working capital ... Read Full Answer >>
  3. How can I calculate funds from operation in Excel?

    In general, the terms "work in progress" and "work in process" are used interchangeably to refer to products midway through ... Read Full Answer >>
  4. When does Q4 start and finish?

    Most companies such as Facebook have financial years that end on December 31st. For these companies, the fourth quarter begins ... Read Full Answer >>
  5. When is it useful to look at a company's fixed asset turnover ratio?

    It is useful to look at a company's fixed asset turnover ratio when an outside observer, such as an investor, wants to know ... Read Full Answer >>
  6. What is the difference between perfect and imperfect competition?

    Perfect competition is a microeconomics concept that describes a market structure controlled entirely by market forces. In ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Section 1231 Property

    A tax term relating to depreciable business property that has been held for over a year. Section 1231 property includes buildings, ...
  2. Term Deposit

    A deposit held at a financial institution that has a fixed term, and guarantees return of principal.
  3. Zero-Sum Game

    A situation in which one person’s gain is equivalent to another’s loss, so that the net change in wealth or benefit is zero. ...
  4. Capitalization Rate

    The rate of return on a real estate investment property based on the income that the property is expected to generate.
  5. Gross Profit

    A company's total revenue (equivalent to total sales) minus the cost of goods sold. Gross profit is the profit a company ...
  6. Revenue

    The amount of money that a company actually receives during a specific period, including discounts and deductions for returned ...
Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!