Revenue Passenger Mile (RPM) is a key performance indicator used in the airline industry to measure the success of the various marketing and pricing strategies of the airline industry. It is calculated as the total number of paying passengers multiplied on their travel mileage for a specific period of time. It shows the demand for air travel generated by customers and helps measure the success of an airline's customer acquisition efforts.

RPM is the most commonly used metric to assess airline performance; it is estimated that the global airline industry generates more than 8 trillion RPM annually. It is used to evaluate airline performance in terms of cost-effectiveness, as it measures the number of paying passengers multiplied by miles travelled, allowing for a comparison of customer demand for different airlines.

The calculation of an airline’s RPM should always be accompanied by an airline’s available seat miles (ASM) which measures an airplane’s carrying capacity available to generate revenue. RPM and ASM will provide insight into customer demand and the ability of the airline to fill seats. An airline’s Load Factor is a percentage that reflects how effective an airline is at earning revenue. To calculate an airline’s Load Factor, divide the airline’s revenue passenger mile by its available seat miles. A high Load Factor is indicative of an airline’s ability to convert sales by filling seats.

RPM, ASM and Load Factor can be used individually or in combination, to measure an airline’s performance relative to the industry. The ability to properly use these metrics, will help airlines maximize revenue, evaluate customer demand and improve efficiency. Therefore, the use of RPM and its corresponding metrics is becoming increasingly important to the airline industry in terms of cost-effectiveness, customer acquisition, and overall performance.