1.Small airline flies 10,000,000 seat miles per year. Yield is 10 cents per RPM. Cost per available seat mile or CASM is 8 cents, so the annual costs are 8 cents (.08) x 10,000,000 or $800,000. After calculating the break-even load factor as a percentage of ASMs is this airline breaking even? If not, what would you change to break even?

(.10 x 10,000,000) - (.08 x 10,000,000) = 200,000

200,000/10,000,000

LF B-E .02 or 2%

what is the Load Factor