Cost per Available Seat Mile CASM
Transportation Term
The formula for calculating CASM is as follows:
CASM = Total Operating Costs / Total Available Seat Miles
The resulting figure represents the cost of operating each mile of available seat space on a given route or flight. This allows airlines and other transportation companies to compare their costs to industry benchmarks and identify areas where they can improve efficiency.
CASM is an important metric for airlines, as it affects their profitability and competitiveness. Airlines that are able to operate at a lower CASM than their competitors may be able to offer lower ticket prices or better margins. However, reducing CASM can be challenging, as it may require reducing costs without compromising safety or quality.
Overall, Cost per Available Seat Mile is a crucial metric in the transportation industry and is used extensively to monitor performance and identify opportunities for improvement.
Airline Industry
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