How is the passenger load factor calculated?

The passenger load factor is calculated by assessing available seats versus sold seats. This metric provides insight into the efficiency of an airline in filling its seats. A high passenger load factor indicates that a large percentage of the airline's available seats are being filled by paying customers, which is crucial for profitability. It helps airlines understand how well they are utilizing their capacity and can influence decisions regarding flight schedules, pricing strategies, and routes.

For example, if an airline has 200 seats on a flight and sells 180 tickets, the passenger load factor would be 90%, demonstrating strong demand. This calculation is essential for airlines to assess performance and make strategic adjustments.