No, CASM is just the operating cost of the airline divided by the number of ASMs. The figures as reported by the airlines do not adjust for stage length.
What does it mean to adjust for stage length?
Every airline has an average stage length. It's the average length of a sector for that quarter (or year or whatever period you're measuring ASMs or operating costs).
The average stage length for F9 is quite long---don't remember off the top of my head, but I'd guess it's well over 1000 miles. It's probably in F9's latest financials.
The average stage length for Southwest is pretty short, I think somewhere around 600 miles.
All things remaining equal, CASM for a given flight goes UP as flight length goes down, because the cost of operating at cruise altitude is small---most of the cost of a flight comes in everything that happens at an airport: checking people in, boarding, takeoff, landing, getting people off, getting them their bag, etc.
So, if Southwest and Frontier were identical in all other respects except their average stage length, you'd expect Frontier to have a lower average CASM than Southwest.
Wall St analysts spend a lot of time worrying about these things. All of them agree: Frontier's costs are significantly higher than those of Southwest, once you stage-length adjust appropriately. I heard an estimate of 15% higher than Southwest by a guy who is one of the best of the analysts.
Here's another secret of Southwest vs. Frontier. Southwest won't be relying a lot on Denver originating passengers to start with. Take a look at where it's flying to Denver from, initially: Las Vegas, Phoenix & Chicago Midway. All of these are huge Southwest strongholds. So suppose you're a guy who flies Southwest a lot out of Phoenix. At the moment you're not flying Southwest whenever you go to Denver because Southwest until now hasn't flown to Denver (well, it did back in the 80s, but that's ancient history). Now that guy is going to say "hey, my airline now flies to Denver, great, another chance to get Southwest frequent flyer credits". That guy might have flown America West, or United or Frontier before. Now he's flying Southwest. That's money out of Frontier's pocket (or United or America West) that Southwest won't even have to fight to get.
Southwest is going to do just fine at Denver just from folks like that. It's going to chip away at Frontier's passenger base and Frontier better raise the level of its game because otherwise it will be crushed between United and Southwest.
TOGA said:
FlyBoeingJets -
I've just accepted a job at F9, and one of the things I liked about them was their CASM as it compares to SWA. In fact, that's one specific reason I feel OK about resigning my seniority with 2000 pilots under me. So, your comment about their CASM piqued my curiosity. Please don't think I'm being a smartass by asking this (quite the opposite, I assure you), but how would you 'adjust CASM for stage length'? Doesn't "Cost per Available Seat Mile" already specifically accomplish that 'adjustment'? F9's CASM is lower, until (of course) you add in SWA's fuel hedging program.