What is the term for a special counting unit established by IATA to calculate airfares that involve countries with different currencies?

• A. Maximum Permitted Miles (MPM)
• B. Mileage System
• C. Neutral Units of Construction (NUCs)
• D. One-Way Trip

Answer: (C)

Neutral Units of Construction are IATA’s universal pricing unit used to calculate airfares when routes involve multiple currencies. The point of this unit is to strip fares of currency-specific fluctuations by expressing all price components in a single, currency-neutral measure. Airlines and travel agents can then convert that neutral amount into the passenger’s local currency at the time of ticketing or settlement, keeping pricing consistent across countries with different currencies. This approach helps manage exchange-rate risk and simplifies fare construction for complex itineraries that span borders and currencies. The other terms don’t serve this purpose: Maximum Permitted Miles relates to distance-based limits, the Mileage System is not the standard currency-neutral pricing unit, and a One-Way Trip refers to trip direction rather than pricing math.