Aviation
Yield (airlines)
Passenger revenue per revenue passenger kilometre: the average fare per kilometre.
Last reviewedWhat does Yield (airlines) mean?
In airlines, yield is passenger revenue divided by RPKs, the average fare earned per passenger per kilometre flown. Example: a flight earns 12,240 from 153,000 RPKs, so yield is 0.08 per RPK (8 cents, if the currency is dollars). Yield usually falls as trips get longer, because fares do not rise in line with distance, so compare airlines with similar route lengths. Passenger revenue per ASK = load factor x yield. In manufacturing, yield means something different: see yield.
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Related terms
- RPK (revenue passenger kilometre)One paying passenger flown one kilometre: the standard measure of airline traffic.
- RASK (revenue per available seat kilometre)Total airline revenue divided by ASKs.
- Load factorThe share of seats filled with paying passengers: RPK divided by ASK.
- Yield (manufacturing)The share of units made that come out good enough to sell.
- ASK (available seat kilometre)One seat flown one kilometre: the standard measure of airline capacity.
- CASK (cost per available seat kilometre)Total airline operating cost divided by ASKs.
- Break-even load factorThe load factor at which revenue exactly covers costs at current fares.
- Fuel hedgingLocking in the price of part of future fuel to reduce the risk of price swings.