Aviation industry closely watching passenger load factor as flights rebound

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Aviation,Industry,Passenger Load Factor

A rebound in bookings and flights has the aviation industry closely watching the ratio of seats being filled, a crucial measure of demand and a guide to profitability. Passenger load factor, a commonly used measure that shows the percentage of capacity utilised, stands at 81.3 per cent in Asia for the year through to the end of September. Yet operators are running well below pre-pandemic levels, indicating that economic uncertainty is holding passengers back from taking as many flights as they used to.

A rebound in bookings and flights has the aviation industry closely watching the ratio of seats being filled, a crucial measure of demand and a guide to profitability. Yet an equally consequential number will need to be tracked if we’re to understand whether the sector has truly recovered from the Covid-19 epidemic. Passenger load factor, a commonly used measure that shows the percentage of capacity utilised, stands at 81.3 per cent in Asia for the year through to the end of September.

That’s a huge jump from 69.2 per cent a year ago, and roughly in line with the level recorded for the same period in 2019. Yet operators are running well below pre-pandemic levels, so such standard metrics don’t tell the whole story, and indicate that while passengers may be returning, economic uncertainty is holding them back from taking as many flights as they used to. Airlines around the region are being hit on multiple fronts. First, they fired so much of their workforces that many now lack enough pilots, cabin crew and ground staff to operate aircraf

 

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