====== Available Tonne Kilometers (ATK) ======
Available Tonne Kilometers (also known as ATK) is a key performance indicator used primarily in the transportation sector, especially for airlines and freight companies. Think of it as a measure of a company's total cargo-carrying //potential// over a specific period. It answers the question: "How much cargo capacity did this company offer to the market?" The calculation is simple: it's the total available cargo capacity in metric tonnes multiplied by the total distance flown in kilometers. For example, if a cargo plane with a capacity of 50 tonnes flies a 2,000-kilometer route, it generates 100,000 ATK for that single flight (50 tonnes x 2,000 km). This metric is a crucial measure of supply. It tells an investor the scale of a company's operations and its potential to generate freight revenue, much like knowing the total number of rooms a hotel chain has available for booking.
===== Why ATK Matters to Investors =====
On its own, ATK tells you about a company's size and growth ambitions. However, its real power for an investor is unleashed when compared with other metrics. It forms the foundation for understanding a cargo operator's operational efficiency and market strength.
==== Gauging Capacity and Growth ====
A consistently rising ATK figure indicates that a company is expanding. This could be happening in a few ways:
  * Adding more aircraft to its fleet.
  * Using larger aircraft with more cargo space.
  * Flying its existing fleet on longer routes.
For an investor, this signals a growth strategy. But growth in capacity is only good if there's demand to fill it. An airline adding massive ATK without a corresponding increase in paying customers is like a restaurant building a huge new dining room that sits empty every night—it just leads to higher costs and lower profits.
==== The Perfect Partner: Revenue Tonne Kilometers (RTK) ====
ATK represents the //supply// of cargo space, but it says nothing about //demand//. To get the other half of the story, investors look at [[Revenue Tonne Kilometers]] (RTK). RTK measures the actual amount of paid cargo transported over a distance. It's the "what you actually sold" metric that perfectly complements ATK's "what you could have sold." A healthy business will see both ATK and RTK growing in tandem. If ATK is soaring while RTK stays flat or falls, it’s a major red flag.
==== Calculating the Cargo Load Factor ====
The magic happens when you combine ATK and RTK to calculate the [[Cargo Load Factor]] (CLF). This is perhaps the single most important efficiency metric for a cargo airline.
**Formula:** Cargo Load Factor = RTK / ATK
The result is expressed as a percentage. For instance, if an airline generated 100 million ATK in a quarter and 85 million RTK, its CLF would be 85% (85m / 100m). This means it successfully filled 85% of its available cargo space with paying freight. A high and stable (or rising) CLF suggests strong demand, efficient management, and good pricing power.
===== A Practical Example =====
Let's imagine you're analyzing "Global Cargo Movers."
  - **The Fleet:** The company operates one type of cargo plane, which has a capacity of 100 tonnes.
  - **The Route:** It flies a single route of 3,000 km, once per day.
  - **1. Calculate Daily ATK:**
    100 tonnes x 3,000 km = **300,000 ATK** per day.
    This is the total cargo product Global Cargo Movers offers to the market daily.
  - **2. Introduce Revenue (RTK):**
    After reviewing the company's reports, you find that, on average, the plane flies with 80 tonnes of paid cargo.
    The daily RTK is: 80 tonnes x 3,000 km = **240,000 RTK**.
  - **3. Find the Cargo Load Factor:**
    CLF = 240,000 RTK / 300,000 ATK = **80%**.
    This tells you that Global Cargo Movers is successfully selling 80% of its capacity, a strong operational figure.
===== The Value Investor's Angle =====
A true value investor is never dazzled by growth for growth's sake. A rapidly expanding ATK is not inherently good. The core principle is to find well-managed, profitable businesses, and the relationship between ATK and RTK is a window into a transport company's soul.
Look for companies that grow their capacity (ATK) intelligently while maintaining or improving their Cargo Load Factor. A company that expands its fleet but sees its CLF drop from 80% to 65% is destroying value; its new assets are underperforming and dragging down overall profitability. Conversely, a company that maintains a high CLF while methodically growing its ATK is demonstrating operational excellence and an ability to match supply with real market demand.
This concept is nearly identical to [[Available Seat Kilometers]] (ASK), the key capacity metric for passenger airlines. By tracking ATK and its related figures, you can cut through management's grand statements and assess whether a company's growth is profitable and sustainable.