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Revenue per available seat mile (RevPASM)

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Alaska Airlines had passenger revenues of $2.644 billion with a total of 24.22 billion available seat miles. Their reported load factor (average capacity usage) was 77.3% and RevPASM was 10.9 cents.

With all other factors remaining constant, what would you project for RevPASM if Alaska Airlines could successfully increase their load factor to 80%?

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Solution Summary

The solution gives step by step answer, explaining the formulae used in computation.

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Load Factor = Revenue Passenger Miles / Available Seat Miles

Yield = Revenue / Revenue Passenger Miles

(RevPASM) Revenue Per ...

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