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. Chapter 11

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

    A measure of an airplane's carrying capacity available to generate ...
  6. Cyclical Industry

    A type of an industry that is sensitive to the business cycle, ...
RELATED FAQS
  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. 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 >>
  3. 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 >>
  4. 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 >>
  5. 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 >>
  6. How difficult is it to understand business analytics?

    In the abstract, business analytics is the study of financial, economic, consumer and production data through statistical ... Read Full Answer >>
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. Economics

    Understanding Organizational Behavior

    Organizational behavior is the study of how humans interact in group environments.
  7. Economics

    Understanding Implicit Costs

    An implicit cost is any cost associated with not taking a certain action.
  8. Economics

    What are Deliverables?

    Deliverables is a project management term describing an object or function that must be provided or completed by a certain due date.
  9. Economics

    What Does Capital Intensive Mean?

    Capital intensive refers to a business or industry that requires a substantial amount of money or financial resources to engage in its specific business.
  10. Taxes

    Understanding Write-Offs

    Write-off has different meanings depending on the context in which it is used, but generally refers to a reduction in value due to expense or loss.

You May Also Like

Hot Definitions
  1. Social Security

    A United States federal program of social insurance and benefits developed in 1935. The Social Security program's benefits ...
  2. American Dream

    The belief that anyone, regardless of where they were born or what class they were born into, can attain their own version ...
  3. Multicurrency Note Facility

    A credit facility that finances short- to medium-term Euro notes. Multicurrency note facilities are denominated in many currencies. ...
  4. National Currency

    The currency or legal tender issued by a nation's central bank or monetary authority. The national currency of a nation is ...
  5. Treasury Yield

    The return on investment, expressed as a percentage, on the debt obligations of the U.S. government. Treasuries are considered ...
  6. Bund

    A bond issued by Germany's federal government, or the German word for "bond." Bunds are the German equivalent of U.S. Treasury ...
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!