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Passenger load factor

Passenger load factor, or load factor, measures the capacity utilization of public transport services like airlines, passenger railways, and intercity bus services. It is generally used to assess how efficiently a transport provider fills seats and generates fare revenue.

Passenger Capacity of different Transport Modes
Road Space Requirements

According to the International Air Transport Association, the worldwide load factor for the passenger airline industry during 2015 was 79.7%.[1]

Overview

Passenger load factor is an important parameter for the assessment of the performance of any transport system. Almost all transport systems have high fixed costs, and these costs can only be recovered through selling tickets.[2] Airlines often calculate a load factor at which the airline will break even; this is called the break-even load factor.[3] At a load factor lower than the break even level, the airline will lose money, and above will record a profit.

The environmental performance of any transport mode improves as the load factor increases. The weight of passengers is normally a small part of the total weight of any transport vehicle, so increasing the number of passengers changes the emissions and fuel consumption to only a small degree. As a vehicle is more highly loaded, the fuel consumed per passenger drops, and fully loaded transport vehicles can be very fuel efficient.

Very heavy loading of a transport vehicle is described as a crush load. Crush loading is a very high level of loading where passengers are crushed against one another. Commenting in May 2017 on the United Express Flight 3411 incident, in which a passenger was forcibly removed, investor Warren Buffett said that passenger demand for cheap flights was resulting in high load factors, resulting in "a fair amount of discomfort."[4]

Calculation example

Specifically, the load factor is the dimensionless ratio of passenger-kilometres travelled to seat-kilometres available. For example, say that on a particular day an airline makes 5 scheduled flights, each of which travels 200 kilometers and has 100 seats, and sells 60 tickets for each flight. To calculate its load factor:

 

Thus, during that day the airline flew 60,000 passenger-kilometres and 100,000 seat-kilometres, for an overall load factor of 60% (0.6).

See also

References

  1. ^ "Demand for Air Travel in 2015 Surges to Strongest Result in Five Years". International Air Transport Association. 4 February 2016. Retrieved 9 June 2016.
  2. ^ "How I can use the load factor of an indicator for the profitability of an airline". Investopedia. Retrieved 12 March 2016.
  3. ^ "Airline Economics". AV Jobs. Retrieved 12 March 2016.
  4. ^ "Warren Buffett Says United Made a 'Terrible Mistake'". Fortune. Reuters. Retrieved 8 May 2017.

External links

  • PLF (Passenger Load Factor)

passenger, load, factor, load, factor, measures, capacity, utilization, public, transport, services, like, airlines, passenger, railways, intercity, services, generally, used, assess, efficiently, transport, provider, fills, seats, generates, fare, revenue, pa. Passenger load factor or load factor measures the capacity utilization of public transport services like airlines passenger railways and intercity bus services It is generally used to assess how efficiently a transport provider fills seats and generates fare revenue Passenger Capacity of different Transport Modes Road Space Requirements According to the International Air Transport Association the worldwide load factor for the passenger airline industry during 2015 was 79 7 1 Contents 1 Overview 2 Calculation example 3 See also 4 References 5 External linksOverview EditPassenger load factor is an important parameter for the assessment of the performance of any transport system Almost all transport systems have high fixed costs and these costs can only be recovered through selling tickets 2 Airlines often calculate a load factor at which the airline will break even this is called the break even load factor 3 At a load factor lower than the break even level the airline will lose money and above will record a profit The environmental performance of any transport mode improves as the load factor increases The weight of passengers is normally a small part of the total weight of any transport vehicle so increasing the number of passengers changes the emissions and fuel consumption to only a small degree As a vehicle is more highly loaded the fuel consumed per passenger drops and fully loaded transport vehicles can be very fuel efficient Very heavy loading of a transport vehicle is described as a crush load Crush loading is a very high level of loading where passengers are crushed against one another Commenting in May 2017 on the United Express Flight 3411 incident in which a passenger was forcibly removed investor Warren Buffett said that passenger demand for cheap flights was resulting in high load factors resulting in a fair amount of discomfort 4 Calculation example EditSpecifically the load factor is the dimensionless ratio of passenger kilometres travelled to seat kilometres available For example say that on a particular day an airline makes 5 scheduled flights each of which travels 200 kilometers and has 100 seats and sells 60 tickets for each flight To calculate its load factor 5 flights 200 km flight 60 passengers 5 flights 200 km flight 100 seats 60 000 passenger km 100 000 seat km 0 6 60 displaystyle frac 5 text flights 200 text km flight 60 text passengers 5 text flights 200 text km flight 100 text seats frac 60 000 text passenger cdot text km 100 000 text seat cdot text km 0 6 60 Thus during that day the airline flew 60 000 passenger kilometres and 100 000 seat kilometres for an overall load factor of 60 0 6 See also EditCrush load Environmental impact of transport Headway Distance between vehicles in a transit system measured in time or space Patronage transportation Number of passengers using a service Route capacity Maximum occupancy of a route in a given time Sustainable transport Sustainable transport in the senses of social environmental and climate impactsReferences Edit Demand for Air Travel in 2015 Surges to Strongest Result in Five Years International Air Transport Association 4 February 2016 Retrieved 9 June 2016 How I can use the load factor of an indicator for the profitability of an airline Investopedia Retrieved 12 March 2016 Airline Economics AV Jobs Retrieved 12 March 2016 Warren Buffett Says United Made a Terrible Mistake Fortune Reuters Retrieved 8 May 2017 External links EditPLF Passenger Load Factor Retrieved from https en wikipedia org w index php title Passenger load factor amp oldid 1142878597, wikipedia, wiki, book, books, library,

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