Load factors down?

Discussion in 'Air Canada | Aeroplan' started by Stephan, Nov 7, 2013.  |  Print Topic

  1. Stephan

    Stephan Silver Member

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    It appears, in keeping with past experience on TOBB, that from now on this forum will also no longer be dominated by opinions originating from Oakville, Ontario...

    So, now who will opine on the value (or lack thereof?) of load factor decreases reported by AC over the last few days? Do these numbers reflect any real trends?

    http://www.newswire.ca/en/story/1255267/air-canada-reports-october-load-factor
     
    Last edited: Nov 7, 2013
  2. 2by4

    2by4 Silver Member

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    The drop in Load Factor is not all that big and most in the airline world would say that the drop is good. Having loads up near 90% is NOT good at any airline (last year Pacific was 89.8). Domestic l/f's at 83% are a concern as they are TOO high. Not enough room to maneuver, too much traffic being left behind.
     
  3. Stephan

    Stephan Silver Member

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    Well, is that a reflection of more T fares or people leaving or the bunching of pax on particular routes? ie: not on YEG-LHR, but full on YYZ-YVR?
    I'm not sure how having fewer BIS is good unless that is offset by increased revenue per pax. Is J full or is the drop in Y? Would be interesting to know.
     
  4. 2by4

    2by4 Silver Member

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    3rd quarter numbers will be out in a few hours. There will be more insight then.
     
  5. AC's paid J numbers have grown very much and become very lucrative. That is why they are redoing their J seats to have more of them. Their profit numbers tell the real story and they are off the wall good. .
     
  6. is it possible that some read only parts of the report that suits a particular view. I read the whole article and came away with a more balanced balanced view: :
    "I am pleased to report a load factor of 81.3 per cent for the month of October, Air Canada's second highest load factor on record for the month," said Calin Rovinescu, President and Chief Executive Officer. "Traffic grew overall by 1.3 per cent led by domestic Canada and U.S. transborder markets. We continue to implement our strategy to build a strong global network. In October, we concluded an enhanced cooperation agreement with the Greater Toronto Airports Authority to further develop Toronto Pearson as a truly global hub and even stronger North American gateway
     
    Last edited by a moderator: Nov 9, 2013
  7. Wandering Aramean
    Original Member

    Wandering Aramean Gold Member

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    It is not feasible to operate with 100% LFs over time. That's actually bad for business as it prevents selling the last-minute, high-yield fares and it has significant negative implications for IRROPs handling.

    In this particular case it is worth noting that capacity was up as well so more passenger seat miles were flown than the year prior; LFs aren't the only metric worth looking at in evaluating the operation.
     
    mach 2 likes this.
  8. +!
     
  9. Canadi>n
    Original Member

    Canadi>n Gold Member

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    The goal is not to raise LF but to increase yield per seat, which apparently is working since profits are now up and consistent. And as noted, keep enough open seats to satisfied high dollar last minute sales on key routes.
     
    RDJ, mach 2 and Wandering Aramean like this.

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