Revenue Passenger Mile (RPM) (2024)

What Is Revenue Passenger Mile?

A revenue passenger mile (RPM) is a transportation industry metric that shows the number of miles traveled by paying passengers and is typically an airline traffic statistic. Revenue passenger miles are calculated by multiplying the number of paying passengers by the distance traveled. For example, an airplane with 100 passengers that flies 250 miles has generated 25,000 RPM.

Key Takeaways

  • Revenue passenger mile (RPM) is a transportation industry metric primarily used by the airline industry to show the number of miles traveled by paying passengers.
  • Available seat miles (ASM) measures an airplane's carrying capacity available to generate revenue.
  • The load factor is a percentage that reflects how effective an airline is at earning revenue.
  • To calculate an airline's load factor, divide the airline's revenue passenger mile by its available seat miles.
  • A high load factor indicates an airline is efficient at selling seats and generating income.

Understanding Revenue Passenger Mile

Revenue passenger miles are the backbone of most transportation metrics. RPM is often compared to available seat miles (ASM), a measure of an airplane's total carrying capacity available to generate income. By dividing RPM by ASM, an airline can calculate load factors.

The load factor is a percentage indicating how effective the airline is at selling seats and earning revenue. Higher load factors, obviously, are desired because empty seats are an opportunity cost for an airline. RPM is an asset utilization metric that calculates the rate of utilization or occupancy of the airplane by the travelers. This metric overlooks the dollar amount factor. That's because even if the load factor is high, it will remain to be known what fare price is needed to determine the dollar amount of revenues.

The Department of Transportation's (DOT) Bureau of Transportation Statistics maintains datasets of aggregate RPM as well as ASM for domestic and international flights. For February 2021, domestic and international U.S. air carrier RPM was 26.5 billion against 49.5 billion ASM, which translated into a load factor of 0.53%.

RPM shows traffic volume, but it goes hand-in-hand with ASM to give airline management critical data about how many seats it must fill to achieve greater profitability.

Airline RPM Reporting

Airlines report RPM statistics on a monthly and year-to-date basis. Three of the largest U.S. carriers each had over 55 billion RPM in 2020. American Airlines recorded 71.2 billion RPM, Delta Airlines registered 61.2 billion RPM, and United Airlines had 57.1 billion RPM.

In conjunction with the ASM data, it was demonstrated that American was the most efficient in loading its fleet during the year. American's load factor was 0.64%, slightly higher than United's 0.60% and Delta's 0.56%.

RPM Around the World

As more people take to the skies to travel within their own countries and to foreign lands, RPM (or RPK for countries on the metric system) will only grow. This is especially true for developing countries that are just beginning massive build-outs of their airport infrastructure to keep pace with their economic growth rates.

This airline traffic statistic will help governments plan airport capacity and slots for individual airlines. Aircraft makers, led by the duopoly of Boeing and Airbus, keep an eye on the longer-term trends in RPM to plan their future production of planes.

Whether based in Asia, Europe, or Latin America, airline companies need to compile this key traffic volume statistic to assist in their forward business strategies to attract passengers in the intensely competitive market.

Revenue Passenger Mile (RPM) (2024)

FAQs

What is passenger revenue per rpm? ›

A revenue passenger mile (RPM) is a transportation industry metric that shows the number of miles traveled by paying passengers and is typically an airline traffic statistic. Revenue passenger miles are calculated by multiplying the number of paying passengers by the distance traveled.

What is passenger revenue per seat mile? ›

What Is Revenue Per Available Seat Mile (RASM)? Revenue per available seat mile (RASM) is a unit of measurement commonly used to compare the efficiency of various airlines. It is obtained by dividing operating income by available seat miles (ASM).

What does RPM mean in airlines? ›

A tachometer is a device for counting. It is used to show the number of revolutions per minute (RPM) of the aircraft engine. An airplane needs one tachometer for each of its engines.

How do you calculate average revenue per passenger? ›

ARPU Revenue Formula

To calculate ARPU, divide the total revenue in a set period by the total number of users in the same period.

What does rpm mean in freight? ›

What is a Rate Per Mile (RPM) in Freight Shipping? In the transportation world, a rate per mile — also commonly referenced as cents per mile (CPM) — is a transportation-pricing method calculated on a per-mile basis.

How do you calculate RPM revenue? ›

Ad revenue per thousand impressions (RPM) is calculated by dividing your estimated earnings by the number of ad impressions you received, then multiplying by 1000. For example, if you earned an estimated $180 from 45,000 ad impressions, your ad RPM would equal ($180 / 45,000) * 1000, or $4.00.

What is a good RPM? ›

The ideal RPM for any vehicle is 1500 RPM to 3000 RPM. In this range, you can save up on a lot of fuel by driving efficiently.

What is the average revenue per mile for trucking? ›

Trucking rates per mile vary based on a number of factors—including gas prices, supply and demand, type of freight, mode, and distance. The latest national averages are: $2.41 per mile for vans. The highest rates are in the Midwest and the lowest in the Northeast.

How do you calculate passenger miles? ›

Air carrier passenger-miles are computed by summing the products of the aircraft-miles flown on each inter airport segment multiplied by the number of passengers carried on that segment.

What is total revenue per passenger? ›

Total Revenue per passenger means the sum of fare revenue, non-fare passenger revenue, and other revenue (collectively, “Total Revenue”) divided by passengers.

What is passenger unit revenue? ›

The average amount of revenue received per paying passenger flown one mile. Calculated as Passenger Revenues/Revenue Passenger Miles. PRASM (Passenger Revenue per Available Seat Mile) Passenger Revenue per seat (empty or full) flown one mile. Often referred to as a “passenger unit revenue” measurement.

What is the average RPM of a plane? ›

On large modern airliners, the speed of the jet engine fan is between 2,500 and 4,500 revolutions per minute (RPM). However, not all engine parts rotate at the same speed.

What is the maximum RPM of an aircraft? ›

In plain language, no matter how fast you turn the engine, the prop tips can't exceed a certain speed. This means most direct-drive general aviation engines are limited to about 2,700 rpm and prop diameters rarely exceed 77 inches.

How do you calculate passenger load factor? ›

Load factor represents the proportion of airline output that is actually consumed. To calculate this figure, divide RPMs by ASMs. Load factor for a single flight can also be calculated by dividing the number of passengers by the number of seats.

How do you calculate cost per revenue mile? ›

To calculate your cost per mile, simply divide your total expenses for the month by the total number of miles you have driven that month. For example, if your expenses totaled $3,000 and you drove 10,000 miles, your cost per mile is $0.30.

How do you solve for revenue? ›

A simple way to solve for revenue is by multiplying the number of sales and the sales price or average service price (Revenue = Sales x Average Price of Service or Sales Price). With that being said, not all revenues are equal. Literally.

What is average revenue run rate? ›

Revenue run rate (also called annual run rate or sales run rate) is a method of projecting upcoming revenue over a longer time period (usually one year) based on previously earned revenue. For example, if your business reported $15,000 in sales in the last quarter, your annual run rate would be $60,000.

How is RPM measured? ›

The engine RPM is measured in two independent ways: a mechanical tachometer in the Dynamometer and an electronic tachometer in the display rack. These devices measure the rotation rate of the engine crankshaft.

How does RPM work? ›

RPM stands for revolutions per minute, and it's used as a measure of how fast any machine is operating at a given time. In cars, rpm measures how many times the engine's crankshaft makes one full rotation every minute, and along with it, how many times each piston goes up and down in its cylinder.

What does 1000 RPM mean? ›

RPM or Revolutions Per Minute in cars is a term used to denote the number of rotations taken by the vehicle's crankshaft per minute. An RPM metre measures how many spins or rotations occur inside the engine per minute. An RPM gauge contains numbers (1,2,3,...) with each denoting 1,000 rpm.

How do you calculate RPM from flow rate? ›

Speed (RPM) = (231 × GPM) / Disp.

What is the formula for RPM on a mill? ›

General Milling Formulas for Working with Carbide Tools, Engravers, End-Mills and Cutters
To FindUsingFormula
SFM Surface Feet per MinuteRPM – Revolutions per Minute Dia – Diameter of End MillRPM ÷ 3.82 x Dia = SFM
RPM Revolutions per MinuteSFM – Surface Feet per Minute Dia – Diameter of End MillSFM x 3.82 ÷Dia = RPM
5 more rows

How fast is 1000 RPM? ›

1000 revolutions per minute (rpm) is equal to 61.027 mph.

What RPM is most efficient? ›

Generally speaking, the faster the engine speed, the more fuel the engine is using. Between 1,300 and 1,500 RPM is the most fuel-efficient engine speed, or what some would call the “sweet spot.”

What is the best RPM for mileage? ›

Shifting up at 2,000 rpm (1,500 rpm for diesel) gives the best mix of speed and economy. On an automatic with manual shift, short shift to save fuel. The heavier the car, the greater will be its thirst.

What happens if RPM is low? ›

However, when the engine RPM drops below the normal range of 800 RPM (for most cars), it is more than likely that you are dealing with an IAC valve problem. In cases where this valve is clogged or is failing, your vehicle will stall instead of slowing to an idle after the release of the throttle.

What is a good cents per mile trucking? ›

It's important to note, however, that truck drivers are typically not paid an annual salary or hourly wage, as with many other careers. Company drivers are paid on a cents per mile basis. Average truck driver pay per mile is between 28 and 40 cents per mile. Most drivers complete between 2,000 and 3,000 miles per week.

What do most trucking companies pay per mile? ›

The most common pay model for truck drivers in California
Pay PeriodSalary
Per mile$0.48
Per week$1,239
Per month$4,956
Per year$49,563

What is revenue per truck per week? ›

Revenue per truck per week is defined as the total amount of linehaul and accessorial revenue generated by a trucking company, divided by the count of a carrier's trucks, within a given week.

Why is passenger yield important? ›

The Yield indicates the profitability of every single passenger. It is the result of the revenue brought in by every single passenger divided by each kilometre flown. This index gives information on an airline's revenue per Available Seat Kilometre (ASK) or per Revenue Seat Kilometre (RPK).

What is passenger revenue per RPK? ›

RPK – Revenue Passenger Kilometers or revenue passenger miles (RPM) measures the air traffic for airbus and aircrafts using the formula: RPK or RPM = P*D where P is the total of revenue paying passengers and D is the distance travelled in kilometers.

What is the formula for miles? ›

1 mile is equal to 1.609344 kilometers. Thus, to convert kilometers to miles, simply multiply the distance in kilometers by 0.621371. Thus, we can convert km to miles by simply dividing the distance in km by 1.6.

What are typical revenue drivers? ›

Revenue drivers are the activities, products, services, or markets that generate income for your business. They can be measured by indicators such as sales volume, price, customer retention, market share, or growth rate.

What is the total revenue rule? ›

Total revenue indicates the full amount of sales of a company's goods or services. To calculate total revenue (TR), multiply the total amount of goods or services sold (Q) by price (P).

How do airlines recognize revenue? ›

Simply put: revenues are only recognized in accounting when the airline's service is actually provided, which is when the passenger uses their ticket for travel. When the flight service is eventually provided, the revenue is then reclassified as earned revenue, and the air traffic liability is reduced accordingly.

How do you calculate cost per available seat mile? ›

How Is CASM Calculated? To calculate CASM, divide the operating cost of an airline by the available seat miles (ASM). The CASM is then expressed in cents.

What are the two basic types of revenues at airports? ›

The first, aeronautical revenue, includes money made from passenger charges, airline terminal space and security rentals and airline landing and usage fees. The second non-aeronautical revenue is generated from retail, food and beverage concessions, parking, and other activities.

What is the RPM limit for Cessna 172? ›

The Cessna 172S was introduced in 1998 and is powered by a Lycoming IO-360-L2A, producing 180 horsepower (134 kW). The maximum engine rpm was increased from 2,400 rpm to 2,700 rpm resulting in a 20 hp (15 kW) increase over the “R” model. As a result, the maximum takeoff weight was increased to 2,550 lb (1,157 kg).

What is the RPM of a 747 jet engine? ›

In flight, the fan blades spin at around 3,000 RPM. Any higher and the fan tips start to run supersonically, making a huge amount of noise in the form of a piercing drone.

How many RPM can a human withstand? ›

Since the NASA/Stanford space settlement studies of the 1970s the settlement design community has assumed that rotation rates must be no more than 12 rpm to avoid motion sickness. To achieve 1g, this rotation rate implies a settlement radius of approximately 225895 m, which is much larger than any existing satellite.

What is a safe cruising RPM? ›

There is no single RPM that is considered “normal” when cruising on a highway. To reduce wear and tear to the engine and ensure you get maximum fuel efficiency, it's best to stay in the 2000-3000 RPM range when driving on a highway at 60-70 mph.

What RPM is too high for cruising? ›

For most modern vehicle, you should not cruise above 2500 to 3000 rpm. Most of the turbo-charged engines develop a lot of more torque around 1800 to 2600 rpm range. Older engines, torque didn't peak until 3500+ rpm.

What is a good passenger load factor? ›

By carrying more passengers, airlines grow their revenue and eventually reach a breakeven, beyond which they can turn a profit. Each airline's breakeven load factor differs, and depends on their costs and expenditure, with the figure usually being around 70% on average.

How can airlines increase revenue? ›

Network expansion, exploring new approaches to distribution, and putting a premium on revenue quality should be at the top of their growth strategies. And with the right ticketing and GDS sub-hosting partner, they can achieve their revenue goals more quickly and cost-effectively.

Which has the highest average passenger load factor? ›

India All Scheduled Airlines: Domestic: Passenger Load Factor data is updated monthly, averaging 69.700 % from Jan 1996 to Feb 2023, with 325 observations. The data reached an all-time high of 90.984 % in Feb 2018 and a record low of 49.290 % in May 2021.

What is passenger flown revenue? ›

Passenger flown revenue increased $1,408 million (+23.5%) on the back of a 24.8% growth in traffic, outpacing the 18.5% expansion in capacity. PLF rose 4.4 percentage points to a record 87.4%. RASK was 10.2 cents, the highest half-year RASK in the Group's history.

What is a good load factor for airlines? ›

By carrying more passengers, airlines grow their revenue and eventually reach a breakeven, beyond which they can turn a profit. Each airline's breakeven load factor differs, and depends on their costs and expenditure, with the figure usually being around 70% on average.

What is a revenue fare? ›

A cash or revenue ticket is an airline ticket that is paid for directly using “cash” and not “true” airline miles.

What is average revenue per visitor? ›

Average revenue per visitor is a measure of total revenue generated by the website each time a visitor land on the website, irrespective of channel, that is, be it via affiliate links, ad clicks, sponsorships and so on.

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