passenger mile

passenger mile definition - business

passenger mile

One passenger transported one mile. Commercial and public transportation systems use passenger miles as a measure of traffic. For example, an airplane carrying 80 passengers on a 500-mile flight produces 40,000 passenger miles. Another measure of traffic, revenue passenger miles, includes only paying passengers and is more relevant for commercial transportation companies.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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