Break-Even Load Factors

[WhiskeyNovember]

Hello,

What are some typical load factors required for an average airline to break even (ie: not make or lose any money) on the flight?

I'm sure there are hundreds of variables involved, not the least of which is aircraft type. I'd be interested in hearing what a break-even load factor would be for, say, a 737 and 757.

In addition, what commercial jet aircraft types are known for having the lowest break-even load factors?

Thanks in advance for any answers to some admittedly vague questions.


-WN

[HZ123]

Cannot help you with your question but I can muddy the water a bit more for you. In general airlines operate on the ASK that is the actual seat cost per Kilometre. I have no idea on any US carriers but would be very interested.

Easyjet UK operates on a 4.5 pence per ASK

BA operates on 13 pence (LGW) and 15 pence (LHR). From those two alone you can see one reason for Easy success. I should imagine that UA and AA would be on the dollar equivalent to BA, may be more.

[Smokie]

Many moons ago we needed just 6 pax to break even on the "Shed" (360).

[brabazon]

WN

This really is a "it depends" type of question. It depends on the airline and its cost structures and route network and it depends on the nature of demand and yield.

Ryanair's BELF in 2000 was around 60%, while EasyJet's was around 70%, in the US I understand BELFs went into the 80-90% bracket after 9/11 when they had to cut fares to get people flying.

If you're interested in reading up on the subject, try Handling the Big Jets by Paul Clark.

[WhiskeyNovember]

6 pax? That's amazing, Smokie... I heard somewhere that the fuselage produces ~60% of the lift in flight one or more of the Shorts (SC.7, 330, 360). Not sure how accurate that was. Cool planes, regardless.



-WN

[Miserlou]

One airline I know had a spokesman who was explaining the companies difficulties by saying that each passenger (on a certain route) was costing them ten pounds.

There then followed a clip of a nearly full MD-80 with the comment that having so many passengers as this must be expensive!

[brabazon]

You may want to look at the following article off MSNBC on US airlines' current BELFs.

http://www.msnbc.com/news/846782.asp?0si=-