Deadhead miles

Definition

Miles run empty to reach a pickup or return from a drop, paid for by nobody.

Why It Matters

They are the reason two operators with the same rate card earn different margins. A book concentrated around one airport or one corporate campus runs less of them than a book scattered across a metro, and the vehicle cost per revenue hour follows directly. Ask for total fleet miles against billed miles instead of for a utilization percentage, because the percentage is usually computed on hours and hides the empty running entirely.