Glossary
Definition of key operating indicators
Our key operating indicators are airline industry metrics that are useful in assessing the operating performance of an airline.
- Available Seat Miles (ASM): A measure of total guest capacity, calculated by multiplying the number of seats available for guest use in an aircraft by stage length.
- Average Stage Length: The average distance of a non-stop flight leg between take-off and landing as defined by International Air Transport Association (IATA) guidelines.
- Cost per Available Seat Mile (CASM): Operating expenses divided by available seat miles.
- Cycle: One flight counted by the aircraft leaving the ground and landing.
- Flight Leg: Segment of a flight involving a stopover, change of aircraft or change of airline from one landing site to another.
- Load Factor: A measure of total capacity utilization, calculated by dividing revenue passenger miles by total available seat miles.
- Revenue Passenger Miles (RPM): A measure of guest traffic, calculated by multiplying the number of segment guests by stage length.
- Revenue per Available Seat Mile (RASM): Total revenues divided by available seat miles.
- Segment Guest: Any person who has been booked to occupy a seat on a flight leg and is not a member of the crew assigned to the flight.
- Utilization: Operating hours per day per operating aircraft.
- Yield (Revenue per Revenue Passenger Mile): A measure of unit revenue, calculated as the gross revenue generated per revenue passenger mile.
