I have searched around the forum and didn’t seem to find a discussion about this topic. I also looked in the WIKI, looked at tutorials and other places to find some kind of response to this.
My main question is the following:
What would be deemed a good Seat Load Factor when you want to grow a Hub system? I am assuming that a 100% seat load factor would be good(profit wise) but would be bad, growth wise since you would not be able to have connecting passengers.
I have been struggling with this question since I have started my company. I have been mainly running a strong SLF of about 96% however, I feel that the SLF might be too high to accommodate new routes with less direct demand and more connection pax.
I would be curious to know what would be a decent SLF to maintain for a HUB system that others have attempted to maintain?
The logic behind it would be if you have an SLF of 87%-94%, the more routes you add the most likely you will get connection pax, however, with an SLF of 95% plus, you are most likely not taking advantage of your entire connection network.
Also, is there a different way to look at this? For instance; do you look at it on a per route basis? Or some other magic way?
PS: If I may have missed a topic about this in the past, please link me to it!