An altimeter works on the principle of the ICAO Standard Atmosphere. ISA is the standard at which you can compare the actual atmosphere with at any point.
- True Altitude = Pressure Altitude + Pressure Correction + Temperature Correction
Therefore, if standard temperature exists but non standard pressure, the altimeter reading will have an error. If standard pressure exists but non standard temperature, the altimeter reading will also have an error.
True Altitude will be equal to Pressure Altitude if standard atmospheric conditions are present in the atmosphere.
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