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Author Topic: Optimum LF  (Read 1896 times)

Offline SMOOTHEE50

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Optimum LF
« on: April 01, 2011, 02:44:06 AM »
Any ideas on what the ideal LF is.  Does is change per aircraft?

Offline BobTheCactus

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Re: Optimum LF
« Reply #1 on: April 01, 2011, 03:08:30 AM »
depends on competition and route demand
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Offline ArcherII

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Re: Optimum LF
« Reply #2 on: April 01, 2011, 03:21:33 AM »
With no competition on a given route, and with a good route image (no need of route marketing, just fly the route at least 6x weekly), any plane can have between 85% and 90% and as far as 95% in average. and that's a very good number.

Now, with competition but demand not yet met, you will still have decent 85% LF. the thing about competition is that frequency matters a LOT. Meaning that if you have only a daily flight on that route and your competition has two or more daily, given that both of you operate the same type of airplane, you will end up losing some LF to the other airline.

Also, airplane size matters (on the wrong side), as the smaller airplanes tend to fill their seats more often than bigger ones. For instance, if you have a 737-700 with 136pax and competition has two 68 seat CRJs, he will have better %LF than you.
It could be associated with the frequency thing, as one would need to do two flights on a CRJ to met the capabilities of one 737. But I tend to stay away from that belief, as I've seen several times an 68-seat E-Jet eating a 90-seat CRJ, each one flying 1x daily.

As a side note, route image is important. But you can easily achieve 100 image by just flying the route, the more times you fly it, the sooner you'll get 100 RI.

Hope it helps

cheers

Jps

  • Former member
Re: Optimum LF
« Reply #3 on: April 01, 2011, 09:40:24 AM »
You also have to look at the price; the flight may not be as profitable with 90+ LF than with ~80% LF and higher ticket price.

Offline Sigma

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Re: Optimum LF
« Reply #4 on: April 01, 2011, 02:09:54 PM »
Well, the "ideal" or "optimum" LF is 100% -- completely full.  Anything else is less money.  But if you have to drop your pricing 20% to get from a 90% LF to a 100% LF, it's a moot point that your plane is full because your net revenue is less (and that doesn't really happen in AWS anyway as price doesn't drive much demand).

If you're asking what the minimum is to break-even, well that's entirely dependent on the plane, the route, and the pricing.  Little planes might break-even at 80% LF, big planes at 40% LF.  Long routes that use LOTS of fuel per person might require 80% LF just to pay the gas bill.  A short route on a very big plane might turn a profit at just 20% LF.  And then it all depends on your pricing -- charge 50% of standard pricing and you'll need double the passengers just to make the same revenue.  And every infinite possible combination therein.
« Last Edit: April 01, 2011, 02:12:01 PM by Sigma »

 

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