Load Factor

RECENT NEWS
MarketWatch  Dec 4  Comment 
Shares of Delta Air Lines Inc. tacked on 1.3% in premarket trade Monday, after the air carrier said November load factor rose from a year ago, as traffic growth outpaced an increase in capacity. Load factor was 85.4% last month, up from 85.0% a...
SeekingAlpha  Oct 12  Comment 
SeekingAlpha  Oct 10  Comment 
SeekingAlpha  Aug 10  Comment 
MarketWatch  Aug 9  Comment 
Shares of American Airlines Group Inc. fell 0.9% in premarket trade Wednesday, after the air carrier said July load factor declined as capacity growth outpaced a traffic increase. The company said traffic for the month rose 0.8% from a year ago...




RELATED WIKI ARTICLES
 

Load factor is a metric used primarily in the transportation industry. A company's load factor is defined as percentage of their available seats that are filled.

Load factor = Revenue Passenger Miles (RPM) / Available Seat Miles (ASM)

Companies can determine a minimum load factor they need to meet in order to break even financially. That is, once a company meets a certain load factor the revenues from doing so will cover the costs of providing their seat capacity. If they are below this break-even load factor the company will be spending more than they are earning and will lose money.

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