Revenue per Available Seat Mile RASM Definition & Meaning | Transportation Term | CSIMarket
CSI Market
Sign In | Register

Glossary

Revenue per Available Seat Mile RASM

Transportation Term

Revenue per Available Seat Mile (RASM) is a financial metric used in the transportation industry to measure the revenue generated by an airline or other transportation company for each seat that is available for sale on a given flight or route. RASM is calculated by dividing a company*s total revenue for a given period by the total number of seat miles flown by that company during that period.

The RASM metric is particularly important in the airline industry, where it is used as a key performance indicator (KPI) to measure the effectiveness of an airline*s pricing strategy. By tracking RASM over time, airlines can determine whether they are pricing tickets effectively, and adjust their pricing strategies to maximize revenue.

For example, if an airline*s RASM is consistently lower than its competitors, it may indicate that the airline is not pricing its flights effectively, and may need to adjust its pricing strategy to increase revenue. Conversely, if an airline*s RASM is consistently higher than its competitors, it may indicate that the airline is pricing tickets too high, and may need to adjust its pricing strategy to remain competitive.

Overall, RASM is a key metric for transportation companies, particularly airlines, as it provides valuable insight into the effectiveness of pricing strategies and helps inform business decisions related to revenue management.




Airline Industry

More Glossary Terms Beginning with R
  • Radiolabeling
    Process of attaching a radioactive isotope, such as Iodine 131.
    Health Care Term Letter: R
  • Radiopharmaceutical
    A radioactive compound used in radiotherapy or diagnosis.
    Health Care Term Letter: R
  • Randomized Clinical Trial
    A clinical trial in which the participants are assigned randomly to different treatment groups.
    Health Care Term Letter: R
  • Rate of Change ROC
    Rate of Change ROC Untitled Document Rate of Change ROC The Rate of Change (ROC) indicator is similar to momentum, a oscillator that measures the percent change in price from one period to the next. When ROC is above the 0-line and rising, prices are increasing at an increasing rate. If ROC is above the 0 line but is declining, prices are still increasing but at a decreasing rate. On the other han
    Technical Indicator Letter: R
  • Rating Agency Condition
    means the written confirmation or reaffirmation, as the case may be, from each rating agency then rating the notes that any intended action will not result in the downgrading of its then-current rating of any class of notes.
    Financial Term Letter: R
  • Reagent
    A chemical added to a sample under investigation in order to cause a chemical or biological reaction which will enable measurement or identification of a target substance.
    Health Care Term Letter: R
  • Receivables From Customers
    Primarily represents loans to customers which are included in accrued interest and accounts receivable on the Consolidated Balance Sheets.
    Financial Term Letter: R
  • Receivables Turnover Ratio
    A ratio that measures companys ability to collect the loans (Accounts receivables) it has provided to its customers by dividing revenus by accounts recievable. High ratio indicates that company efficiently collects it outstanding recievables. Accounts Receivables Turnover Ratio Formula = (Revenue / Receivables)
    Fundamental Analysis Letter: R
  • Receptor
    a protein on the cell surface or inside the cell that is the binding sites of ligands, including agonists and antagonists.
    Health Care Term Letter: R
  • Recession
    In general usage, the word recession connotes a marked slippage in economic activity. While gross domestic product (GDP) is the broadest measure of economic activity. The recession is often-cited as two consecutive quarters of negative GDP.
    Economy Term Letter: R
  • RECIST
    Response Evaluation Criteria in Solid Tumors, a US standard.
    Health Care Term Letter: R
  • Recombinant
    Novel DNA made by genetic engineering.
    Health Care Term Letter: R
Get Revenue per Available Seat Mile RASM's full dataset: Subscribe API License