Load Factor

Load factor is a measure used to assess how efficiently an airline, electricity grid, or other service uses its capacity. It compares the actual amount of service or passengers used to the maximum possible capacity during a period. For example, if a flight seats 200 people but only 150 are on board, the load factor is 75%. A higher load factor indicates better utilization of resources, reflecting efficiency, while a lower load factor suggests more unused capacity. This metric helps operators optimize operations, manage costs, and improve profitability.