Load Factor

RECENT NEWS
newratings.com  Sep 6  Comment 
LUTON (dpa-AFX) - Low-cost airline easyJet Plc (ESYJY.PK, EZJ.L) reported Tuesday that passengers, or the number of earned seats flown, in the month of August increased 6.4 percent to 7.51 million passengers from 7.06 million passengers in the...
Benzinga  Sep 2  Comment 
Delta Air Lines, Inc. (NYSE: DAL) disclosed the total system load factor witnessed 2.9 percentage point drop from 87.3 percent to 84.4 percent in August. For the year-to-date period, the load factor fell 0.5 percentage points. The company's...
SeekingAlpha  Aug 4  Comment 




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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