Was doing some research into CASM and RASM and still trying to wrap my head around these terms. All ive really come grasp from the literature available is "Cost/revnue per available seat mile, the Q400 is good, crj200 is bad (mmkay)?"
Explain it like im five...
What is CASM and RASM? How do we even calculate it to run comparisons between say a jazz q400, a ggn crj 200 and a sky 175?
ELI5: CASM and RASM
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Re: ELI5: CASM and RASM
It's simple if you have all the data to input.
CASM= cost required to fly one seat on an aircraft one mile. So if your costs are $1000/hour and you fly 300nm/hour and you have 20 seats then your CASM is $1000/300/20=~16 cents CASM
RASM is the same except its revenue per seat per mile
Its a good comparison because it takes all factors into account and compares your cost per seat across aircraft types
CASM= cost required to fly one seat on an aircraft one mile. So if your costs are $1000/hour and you fly 300nm/hour and you have 20 seats then your CASM is $1000/300/20=~16 cents CASM
RASM is the same except its revenue per seat per mile
Its a good comparison because it takes all factors into account and compares your cost per seat across aircraft types
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Re: ELI5: CASM and RASM
Yield (expressed in cents) is the profit an airline makes per seat per mile. Yield = RASM - CASM
RPM, is revenue passenger miles. Useful in comparing one year to the next. If the number of tails, or seats changes, you can still compare how profitable you are year to year.
Load Factor is percentage of bums in seats.
RPM, is revenue passenger miles. Useful in comparing one year to the next. If the number of tails, or seats changes, you can still compare how profitable you are year to year.
Load Factor is percentage of bums in seats.