Series 79 practice questionhardIndustry/Sector Analysis
When analyzing an airline, which KPI most directly reflects the percentage of seats sold?
- AAverage revenue per user
- BBook-to-bill ratio
- CReserve replacement ratio
- DLoad factor✓ Correct answer
Explanation
Why D — Load factor
Load factor Load factor measures how much of an airline’s available seat capacity is occupied by paying passengers. It is a core utilization metric that helps bankers compare route efficiency and pricing power.
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