Rising Breakeven Load Factors Threaten Airline Finances. Issue Brief Number 8

摘要

Breakeven Load Factor (BLF) is the average percent of seats that must be filled on an average flight at current average fares for the airlines passenger revenue to break even with the airlines operating expenses. This study focuses on three groups of major passenger airlines: The recently bankrupt--airlines that have filed for bankruptcy within the last two years. This group consists of United Airlines and US Airways. (US Airways has recently emerged from bankruptcy.) The at risk--airlines that have not filed for bankruptcy, but they have not achieved yearly profits over the last two years. This group consists of American Airlines, Alaska Airlines, Continental Airlines, Delta Air Lines, America West Airlines, and Northwest Airlines. The profitable--the only major passenger airline to show a yearly profit over the last two years is Southwest Airlines.