A load factor is the quantity of seats an airline is able to fill. Air Canada and West Jet have been increasing their load factor over the years. In 2011 Air Canada had a load factor of 81% and it increased in 2012 by 1.7%. West yet started with a 79.7% and it increased by 3.1% in 2012.

The airlines are now applying new methods to create fuller planes and bigger profits. They are adjusting their prices according to the time of the flights and there are analyzing more their capacity management. Airlines analyze and modify the number of flights they offer in order to match demand. First, they investigate and look at regular last minute demand and leave enough room for these last-minute fliers. Unfortunately, these costumers will pay the high fares. After they have left some room for last-minute fliers, the company offers seats at different prices for people who book flights ahead of time. This is helping the company to make profit, since the airlines are charging these last-minute fliers a higher fee than other costumers. This is also helping the company’s revenue streams since the demand for last-minute flights are usually higher. The airlines are still improving their strategies to increase their load factor since they are aware that empty seats do not create revenue.

http://www.theglobeandmail.com/globe-investor/the-science-of-filling-seats-airlines-chart-path-to-fuller-planes/article6995096/