Load Factor

RECENT NEWS
MarketWatch  Jun 9  Comment 
Shares of American Airlines Group Inc. rose 0.5% in premarket trade Friday, after the air carrier reported May load factor that increased, as traffic growth outpaced a rise in capacity. Load factor increased to 82.1% from 81.9% a year ago, while...
MarketWatch  Jun 7  Comment 
Shares of United Continental Holdings Inc. slumped 1.5% in premarket trade Wednesday, after the air carrier reported May load factor declined to 81.6% from 82.5% a year ago, as capacity growth of 3.7% outpaced the 2.6% increase in traffic. The...
MarketWatch  Apr 10  Comment 
United Continental Holdings Inc. late Monday said its March traffic rose 3% to 17.61 billion revenue passenger miles from a year earlier. A revenue passenger mile is equal to one passenger flown one mile. Total capacity last month increased 3.4%...
The Hindu Business Line  Mar 24  Comment 
NTPC-Simhadri thermal station is doing exceedingly well and ranks 17 amwong the leading power projects with a plant load factor of 80.66 per cent, according to Group General Manager PK Bondriya. H...




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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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