Quick Facts
- Type
- Commercial Metric
- Definition
- The percentage of available seats that are filled with paying passengers
- Used By
- Airlines, Analysts
Definition#
Load factor in the airline context is the ratio of revenue passenger miles (RPMs) to available seat miles (ASMs), expressed as a percentage. It measures how well an airline fills its seats.
Why It Matters Operationally#
Higher load factors mean better utilization of capacity but leave less room for booking flexibility. Most major airlines target load factors of 80–90%. Break-even load factor is the minimum needed to cover costs.