Revenue per Available Seat Mile (RASM)

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Definition of 'Revenue per Available Seat Mile (RASM)'

Revenue per Available Seat Mile (RASM) is a measure of an airline's profitability. It is calculated by dividing an airline's total revenue by its total available seat miles.

Available seat miles are the number of miles that an airline could have flown if all of its seats were full. Total revenue is the total amount of money that the airline earned from selling tickets, cargo, and other services.

RASM is a useful metric for comparing the profitability of different airlines. Airlines with higher RASM are more profitable than airlines with lower RASM.

RASM can also be used to track an airline's profitability over time. If an airline's RASM is increasing, it is likely that the airline is becoming more profitable. If an airline's RASM is decreasing, it is likely that the airline is becoming less profitable.

RASM is a valuable tool for understanding an airline's financial performance. However, it is important to note that RASM does not take into account an airline's operating costs. Therefore, it is not a complete measure of an airline's profitability.

In addition to RASM, there are other metrics that can be used to measure an airline's profitability. These metrics include:

* Cost per Available Seat Mile (CASM)
* Passenger Load Factor (PLF)
* Net Profit Margin

By using a variety of metrics, airlines can get a more complete picture of their financial performance.

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