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Definition of Breakeven Load Factor
Breakeven Load Factor refers to the minimum percentage of seats an airline needs to fill in order to break even. This factor takes into account the airlines operating costs and the yield from the filled seats. In essence, if an airline fails to achieve this load factor, it will operate at a loss. Hence, airlines aim to achieve and surpass this threshold to remain profitable. The Breakeven Load Factor is an important measure in the airline industry as it helps airlines to set and adjust pricing strategies based on their costs and demand for their services.
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