Break-Even Load Factor (BELF) is the passenger load factor at which an airline’s operating revenue equals its operating costs. At this level, the airline breaks even based on the assumptions used for the calculation. It is expressed as a percentage.
BELF is influenced by factors such as operating costs, passenger revenue and the airline’s average fares.
For example, if an airline’s BELF is 85% but its actual Passenger Load Factor (PLF) is only 78%, it is operating below its break-even load factor and may be making an operating loss under the assumptions used in the calculation.
Do Passengers Need to Know About BELF?
Passengers do not need to understand BELF to book flights or use airline services. It is primarily a financial and operational metric used by airlines, analysts and investors to assess airline performance.
A lower BELF generally means an airline needs to fill a smaller proportion of its available seats to break even, all else being equal.
Related Terms
- Available Seat Kilometres (ASK)
- Passenger Load Factor (PLF)
- Revenue Passenger Kilometres (RPK)
- Airport Glossary
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