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Prateek Garodia

PASSENGER LOAD FACTOR
What is ASK/ASM?

 ASM stands for Available Seat Miles
 Countries using kilometers as a measure of
 distance use ASK (Available Seat Kilometers)
 ASM is the number of seats available to a
 passenger for purchase per mile of flight
 It is used to measure an airlines passenger
 carrying capacity


                                 11/10/2011     2
What is ASK/ASM?

 It excludes seats not available for passengers
 due to weight of fuel or other load
 The higher the ASM the higher the capacity
 of the airline to carry more passengers
 This unit can be used to measure carrying
 capacity of an airline for a route, a region or
 the entire operation



                                   11/10/2011      3
ASK/ASM Calculation

 Available Seat Miles = Available Seats * Miles
 traveled
 Let us define some variables to help calculate
 ASK/ASM
 S = total seats available
 D = total distance travelled
 ASK or ASM = S * D


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Example 1

 An aircraft has 300 seats available for
 purchase. It flies for 1,000 miles. What is the
 ASM?
 S = 300
 D = 1,000
 ASM = 300 * 1,000 = 300,000
 The airline has 300,000 available seat miles


                                    11/10/2011     5
What is RPK/RPM?

 RPM stands for Revenue Passenger Miles
 Countries using kilometers as a measure of
 distance use RPK (Revenue Passenger
 Kilometers)
 A revenue passenger is one for whose
 transportation an air carrier receives
 commercial remuneration
 RPM is used to measure the number of
 revenue passengers flown for each mile
                                 11/10/2011   6
What is RPK/RPM?

 In conjunction with revenue, this
 measurement is also used to calculate yield
 The difference between RPM and ASM is that
 ASM measures the total carrying capacity of
 the airline while RPM measures the number
 of revenue paying passengers actually carried
 by the airline
 So, RPM is really a subset of ASM
 Ideally RPM should always be equal to ASM
                                 11/10/2011      7
RPK/RPM Calculation

 Revenue Passenger Mile = Revenue
 passengers flown * Miles traveled
 Let us define some variables to help calculate
 RPK/RPM
 P = total number of revenue generating
 passengers
 D = total distance travelled
 RPK or RPM = P * D

                                  11/10/2011      8
Example 2

 An airplane flies a distance of 2,962 miles.
 There are 130 passengers in the flight. What is
 the RPM?
 P = 130
 D = 2,962
 RPM = 130 * 2,962 = 385,060
 In this example, the airline has 385,060
 revenue passenger miles

                                  11/10/2011       9
What is PLF?

 PLF is Passenger Load Factor
 This is a measure of capacity utilization
 It is used to calculate the percentage of
 available capacity used to carry passengers
 It is also used to calculate financial figures like
 capacity utilization required to allow the
 airline to break even
 PLF = RPM / ASM
 Ideally this ratio should always be 1

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Example 3

 An aircraft has 23 seats in first class, 80 seats in
 business class and 313 seats in first class. The
 aircraft flew for 7,733 miles. The RPM of this
 flight was 2,420,429. What is the load factor?
 RPM = 2,420,429
 ASM = (23 + 80 + 313) * 7733 = 416 * 7733 =
 3,216,928
 PLF = 2,420,429 / 3,216,928 = 0.7524
 The load factor or capacity utilization of this
 aircraft for this trip is 75.24%

                                        11/10/2011      11
Exercise 1

 An airline in a year had an ASM of 45,610
 million. In the same year, its RPM was 36,531
 million. What was the airlines passenger load
 factor in that year?




                                  11/10/2011      12
References

 http://en.wikipedia.org/wiki/Revenue_passenger
 _mile
 http://moneyterms.co.uk/rpk-revenue-
 passenger-kilometres/
 http://icaodata.com/Terms.aspx#RevenuePasse
 nger
 http://www.airliners.net/aviation-
 forums/general_aviation/read.main/3582373/
 http://www.linkedin.com/groupAnswers?viewQu
 estionAndAnswers=&discussionID=76033155&gi
 d=59519&commentID=55329309&trk=view_disc
 &ut=1XhPa6HzrtskY1
                                  11/10/2011      13
References

 http://en.wikipedia.org/wiki/Available_seat_miles
 http://moneyterms.co.uk/ask-available-seat-
 kilometre/
 http://www.wikinvest.com/metric/Available_Seat_M
 iles_(ASM)
 http://icaodata.com/Terms.aspx#SeatKilometresAv
 ailable
 http://en.wikipedia.org/wiki/Passenger_load_factor
 http://moneyterms.co.uk/plf-passenger-load-factor/


                                     11/10/2011       14

More Related Content

Passenger load factor

  • 2. What is ASK/ASM? ASM stands for Available Seat Miles Countries using kilometers as a measure of distance use ASK (Available Seat Kilometers) ASM is the number of seats available to a passenger for purchase per mile of flight It is used to measure an airlines passenger carrying capacity 11/10/2011 2
  • 3. What is ASK/ASM? It excludes seats not available for passengers due to weight of fuel or other load The higher the ASM the higher the capacity of the airline to carry more passengers This unit can be used to measure carrying capacity of an airline for a route, a region or the entire operation 11/10/2011 3
  • 4. ASK/ASM Calculation Available Seat Miles = Available Seats * Miles traveled Let us define some variables to help calculate ASK/ASM S = total seats available D = total distance travelled ASK or ASM = S * D 11/10/2011 4
  • 5. Example 1 An aircraft has 300 seats available for purchase. It flies for 1,000 miles. What is the ASM? S = 300 D = 1,000 ASM = 300 * 1,000 = 300,000 The airline has 300,000 available seat miles 11/10/2011 5
  • 6. What is RPK/RPM? RPM stands for Revenue Passenger Miles Countries using kilometers as a measure of distance use RPK (Revenue Passenger Kilometers) A revenue passenger is one for whose transportation an air carrier receives commercial remuneration RPM is used to measure the number of revenue passengers flown for each mile 11/10/2011 6
  • 7. What is RPK/RPM? In conjunction with revenue, this measurement is also used to calculate yield The difference between RPM and ASM is that ASM measures the total carrying capacity of the airline while RPM measures the number of revenue paying passengers actually carried by the airline So, RPM is really a subset of ASM Ideally RPM should always be equal to ASM 11/10/2011 7
  • 8. RPK/RPM Calculation Revenue Passenger Mile = Revenue passengers flown * Miles traveled Let us define some variables to help calculate RPK/RPM P = total number of revenue generating passengers D = total distance travelled RPK or RPM = P * D 11/10/2011 8
  • 9. Example 2 An airplane flies a distance of 2,962 miles. There are 130 passengers in the flight. What is the RPM? P = 130 D = 2,962 RPM = 130 * 2,962 = 385,060 In this example, the airline has 385,060 revenue passenger miles 11/10/2011 9
  • 10. What is PLF? PLF is Passenger Load Factor This is a measure of capacity utilization It is used to calculate the percentage of available capacity used to carry passengers It is also used to calculate financial figures like capacity utilization required to allow the airline to break even PLF = RPM / ASM Ideally this ratio should always be 1 11/10/2011 10
  • 11. Example 3 An aircraft has 23 seats in first class, 80 seats in business class and 313 seats in first class. The aircraft flew for 7,733 miles. The RPM of this flight was 2,420,429. What is the load factor? RPM = 2,420,429 ASM = (23 + 80 + 313) * 7733 = 416 * 7733 = 3,216,928 PLF = 2,420,429 / 3,216,928 = 0.7524 The load factor or capacity utilization of this aircraft for this trip is 75.24% 11/10/2011 11
  • 12. Exercise 1 An airline in a year had an ASM of 45,610 million. In the same year, its RPM was 36,531 million. What was the airlines passenger load factor in that year? 11/10/2011 12
  • 13. References http://en.wikipedia.org/wiki/Revenue_passenger _mile http://moneyterms.co.uk/rpk-revenue- passenger-kilometres/ http://icaodata.com/Terms.aspx#RevenuePasse nger http://www.airliners.net/aviation- forums/general_aviation/read.main/3582373/ http://www.linkedin.com/groupAnswers?viewQu estionAndAnswers=&discussionID=76033155&gi d=59519&commentID=55329309&trk=view_disc &ut=1XhPa6HzrtskY1 11/10/2011 13
  • 14. References http://en.wikipedia.org/wiki/Available_seat_miles http://moneyterms.co.uk/ask-available-seat- kilometre/ http://www.wikinvest.com/metric/Available_Seat_M iles_(ASM) http://icaodata.com/Terms.aspx#SeatKilometresAv ailable http://en.wikipedia.org/wiki/Passenger_load_factor http://moneyterms.co.uk/plf-passenger-load-factor/ 11/10/2011 14