Enter the revenue generated from passengers ($) and the passenger miles into the Calculator. The calculator will evaluate the Airline Yield. 

Airline Yield Formula

AY = RP / PM

Variables:

  • AY is the Airline Yield ($/mile)
  • RP is the revenue generated from passengers ($)
  • PM is the passenger miles

To calculate Airline Yield, divide the revenue generated from passengers by the total passengers miles. The passenger miles is calculated by multiply the number of passengers by the distance of the flight.

How to Calculate Airline Yield?

The following steps outline how to calculate the Airline Yield.


  1. First, determine the revenue generated from passengers ($). 
  2. Next, determine the passenger miles. 
  3. Next, gather the formula from above = AY = RP / PM.
  4. Finally, calculate the Airline Yield.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

revenue generated from passengers ($) = 600

passenger miles = 300

FAQs

What factors can affect Airline Yield?
Airline Yield can be affected by various factors including the pricing strategy of the airline, the load factor (percentage of seats filled), route popularity, competition, seasonality, and fuel prices.

How can airlines improve their Airline Yield?
Airlines can improve their Airline Yield by optimizing their pricing strategies, increasing the load factor by using dynamic pricing, offering premium services for higher fares, improving operational efficiency to reduce costs, and exploring new routes with less competition or higher demand.

Why is calculating Airline Yield important?
Calculating Airline Yield helps airlines understand the profitability of their flights on a per-mile basis. It is crucial for making informed decisions about route planning, pricing strategies, and overall operational adjustments to improve profitability.

Can Airline Yield vary significantly between different routes or seasons?
Yes, Airline Yield can vary significantly between different routes due to factors like competition, demand, and operational costs. It can also fluctuate seasonally, with higher yields often seen during peak travel seasons due to increased demand and the ability to charge higher fares.