Passenger revenue per ASM above industry average—a measure of efficiency
Although Delta’s revenue passenger miles, or RPM, and available seat miles, or ASM, are lower than its peers’, Delta’s PRASM is high, reflecting its operational efficiency. From the below formula, we can conclude that two factors contribute to Delta’s above-average PRASM.
Delta’s competitors have higher RPM (AAL with 205.2 billion and UAL with 215.5 billion) and ASM (AAL with 245.4 billion and UAL with 259.9 billion). But these competitors have lower yields (AAL with $16.1 billion and UAL with $16.5 billion) and lower load factors (AAL with 83.6% and UAL with 82.9%).
Southwest (LUV) and Jet Blue (JBLU) have lower capacity, with ASM of 130 billion and 43 billion, respectively. But their yields and load factors differ. Southwest (LUV) has a higher yield of $16.02 but a lower load factor of 80.1%, resulting in a PRASM of $12.8. Jet Blue’s (JBLU) yield is low, at $13.87, but it has a high load factor of 83.7%, resulting in a PRASM of $11.6.