Traffic v.s Demand

[Ref. The Global Airline Industry Edited By Peter Belobaba, Amedeo Odoni and Cynthia Barnhart © 2009 John Wiley & Sons, L td. ISBN: 978-0-470-74077-4]

Total demand” = Traffic + Rejected demand (a.k.a Spill)

For passenger airlines:

Traffic” refers to enplaned passengers. “Airline traffic” is the amount of airline output that is actually consumed or sold. The “traffic” consists of both passengers and cargo. For passenger airlines, they tend to use RPK to measure it.

Demand” includes both those consumers that boarded the flights and those who had a desire to travel on the flight but could not be accommodated due to insufficient capacity.



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