Load Factors

Load factor is a measure used mainly in transportation and energy industries to assess how efficiently a service or system is utilized. It is calculated by dividing the actual usage (like the number of passengers or amount of energy consumed) by the maximum possible capacity over a period. A higher load factor indicates the system is being used close to its full capacity, which means better efficiency and cost-effectiveness. Conversely, a low load factor suggests underutilization, leading to higher costs per unit of service or energy delivered. It helps businesses optimize operations and improve profitability.