Capacity Utilization
Capacity utilization is the measure of how much of the available capacity of an aircraft or an airline is being used. It is calculated by dividing the actual output with the potential output and multiplying the result by 100. In aviation, capacity utilization is an important metric as it helps airlines to determine the efficiency of their operations and make informed decisions about fleet size, route planning, and pricing strategies. A high capacity utilization rate indicates that an airline is using its resources effectively and generating maximum revenue, while a low rate suggests that there is room for improvement in the airline's operations.
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