In: Operations Management
cost per available seat mile
Break-even load factor =
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2. Given total operating cost of $1.6 million and 8.5 million available seat miles, calculate the cost per available seat mile (CASM).
3. What is the break-even load factor if CASM is $0.21 and the fare is $0.35 per mile? For this calculation, the yield is the same as the fare.
2. Cost per available seat mile = 1.6 / 8.5 = $ 0.19
3. Break even load factor = Cost per available seat mile / yield per pessanger mile
= 0.21 / 0.35
= $0.60