3. RPM- Revenue Passenger Miles- Number of Miles Flown X Number of Passengers

Adam Abed

1.  Virgin America

2.  Virgin America is a low cost carrier( LCC). It is a low cost carrier, as it is significantly cheaper than other airlines for the same routes.

3.  RPM- Revenue Passenger Miles- Number of miles flown X number of Passengers

ASM- Available Seat Mile- Number of miles flown X number of seats

RASM- Revenue per ASM- Number of cents received for each available seat mile

CASM- Cost per ASM- Cents needed to operate each ASM

Yield- Revenue/RPM

PRASM-Passenger Revenue per Available Seat Mile

Fuel Consumed- How much fuel is used by aircraft

Fuel Costs per ASM-How much of each ASM goes towards fuel costs. Expressed in cents

Non-Fuel Costs per ASM- How much of each ASM goes towards non-fuel costs. In cents.

4. 

5.  A. Fuel prices increase airline expenses.

B. Fuel prices cause noticeable changes in the operating expenses and revenues of airlines, however, they do not drastically change the net income of airlines.

C. Fuel prices have slowed the growth of airline network growth, however, they have not caused a shrinkage of airline growth at any time.