Rasm

RASM is short for Revenue Per Available Seat Mile. Say you have a toy airplane with 10 seats on it and you want to make money. You could charge $100 for one person to fly all the way from one city to another, but what if only five people want to fly? If you charge $100 for each seat, you will only make $500, but you have ten seats. This means you could either lower the price and attract more customers, or you could charge a higher price for each seat to make up for the empty seats.

This is what airlines do with RASM. They look at all of the seats on all of their planes and see how much money they’ve made from them. They know how many miles their planes flew and how many seats they had available, and they use this information to calculate how much money they made for each available seat mile. This tells them how much money they made on average for each seat that they could have sold.

In other words, RASM is a way for airlines to measure how much money they are making for each seat they have available. It helps them to make decisions about pricing, advertising, and other ways to attract customers. This allows them to make more money and fly more people to more places.