What does the term “load factor” refer to in American Airlines' operational metrics?

The term “load factor” in the context of American Airlines' operational metrics refers specifically to the ratio of available seating capacity that is filled with passengers. This metric is crucial for evaluating the efficiency of an airline's operations, as it indicates how well the airline is utilizing its available seats on flights. A higher load factor typically suggests that more seats are being filled, indicating effective demand for flights and generally leading to higher profitability. Conversely, a low load factor may signal that an airline is not filling enough seats, which can lead to inefficiencies and decreased revenue.

Understanding the load factor helps airlines like American Airlines in making strategic decisions regarding scheduling, pricing, and capacity management to optimize overall performance. This metric plays a significant role in financial planning and operational efficiency, making it a key focus for airline management.