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United Traffic Drops, Load Factor Raises  
User currently offlineFlyingbronco05 From United States of America, joined May 2002, 3840 posts, RR: 2
Posted (12 years 2 months 2 weeks 6 days 16 hours ago) and read 1123 times:

United Airlines' Traffic Drops 13.9 Percent, But Load Factor Rises to 73.2%

"CHICAGO, June 4 /PRNewswire-FirstCall/ -- United Airlines' (NYSE: UAL - News) total scheduled revenue passenger miles (RPMs) fell 13.9 percent in May vs. the comparable month in 2001, on a capacity decrease of 17.2 percent. However, the carrier's passenger load factor rose to 73.2 percent from 70.4 percent a year ago."

More at: http://biz.yahoo.com/prnews/020604/cgtu034_1.html

How can traffic drop yet load factor increases?


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2 replies: All unread, jump to last
 
User currently offlineGoingboeing From United States of America, joined Dec 1999, 4875 posts, RR: 16
Reply 1, posted (12 years 2 months 2 weeks 6 days 16 hours ago) and read 1112 times:

They are flying fewer planes.

User currently offlineBlatantEcho From United States of America, joined Sep 2000, 1903 posts, RR: 1
Reply 2, posted (12 years 2 months 2 weeks 6 days 16 hours ago) and read 1103 times:

Traffic drops when you cut routes, cut frequency, and generally fly less planes than the comparable year before.

Load goes up when those planes are flying around a few % more full, regardless of cuts in routes or frequency.

In case that doesn't make sense. GeorgeAirways could have only one plane and one route all year, I fly a 744 from SFO to OAK. That would be 100% traffic for the base year, so about 416 seats. Lets say that once a year flight I fill to 50% capacity. My load factor is 50%

Next year I get a second 744 and fly two flights from SFO to OAK, my RPMs go up 100%, but my total load could stay the same if I fill that second 744 only to 50%.

Traffic double, load stayed the same......

I hppe that was clear and that I didn't botch it. I don't know if I confused ASL and RPMs at all, please correct me if I did.

George



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