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Thread: How Are Costs Measured at Airlines?
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Old Dec 24, 2002 | 4:17 pm
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LarryJ
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The units used are the ASM and the RSM, available seat mile and revenue seat mile respectively. Any cost can be expressed by this measure.

Total cost per ASM/RSM
Labor cost per ASM/RSM
Fuel cost per ASM/RSM
Whatever you want.

The ASM is the product of an airline regardless of whether the product is sold (converted into a RSM) or spoils (stays empty). It's no different from any other company which produces a product for sale, they just use slightly different terms.
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