The Science of Airline Economics in the Philippines
and why Hawaiian says Goodbye.
LF- Load Factor.
Passenger Load Factor (PLF) or simply LF is defined as measure of the amount of utilisation of the total available seats offered by airlines to a given route. It is useful for calculating the average occupancy on the airline seat for a given destination. By using this information, airlines can determine the profitability and revenue potential of the route network.
In much simpler terms, Load factor represents the proportion of airline output that is actually consumed. Load factor for a single flight can be calculated by dividing the number of passengers by the number of seats.
If an airline offers 1000 seats i.e. Manila-Palau and only 700 seats are sold, the airline has a load factor of 70% for this route.
Based on the 2013 figures released by the Civil Aeronautics Board (CAB), Air Macau is losing terribly followed by Saudia and Thai Airways losing badly. Hawaiian on number 4 has said goodbye, while Kuwait occupies the number 5 slots. Both Saudia and Kuwait Airways makes stop-over flight in Bangkok to compensate their losses. KLM with stops at Taipei improved its performance by registering 64% seat occupancy.