Revenue Passenger Mile (RPM)

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Definition of 'Revenue Passenger Mile (RPM)'

A revenue passenger mile (RPM) is a unit of measurement used in the airline industry to calculate an airline's revenue. It is calculated by multiplying the number of revenue passengers carried by the distance flown in miles.

RPMs are used to measure an airline's efficiency and profitability. An airline with a high RPM is more efficient and profitable than an airline with a low RPM.

There are two types of RPMs: domestic RPMs and international RPMs. Domestic RPMs are calculated by multiplying the number of revenue passengers carried on domestic flights by the distance flown in miles. International RPMs are calculated by multiplying the number of revenue passengers carried on international flights by the distance flown in miles.

The total RPMs for an airline are calculated by adding the domestic RPMs and the international RPMs.

RPMs are an important metric for airlines because they can be used to compare airlines' efficiency and profitability. Airlines with high RPMs are more efficient and profitable than airlines with low RPMs.

RPMs can also be used to track an airline's performance over time. By comparing an airline's RPMs from one year to the next, it is possible to see how the airline's efficiency and profitability have changed.

RPMs are a valuable tool for airlines and investors. They can be used to compare airlines' efficiency and profitability, and to track an airline's performance over time.

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