Utilization Rate

Southwest Airlines Co. (LUV) reported the following data (in millions) for a recent year.

	Year 3			Year 2			Year 1
Available seat miles		140,501			131,004			130,344
Passenger miles flown		117,500			108,035			104,348
Revenue		$18,299			$17,658			$16,721

Southwest refers to its utilization rates as "passenger load factor."

1. Compute the passenger load factor (utilization rate) for each year. Round to one decimal place.

Year 3		%
Year 2		%
Year 1		%

2. Compute the passenger revenue per seat mile flown. Express in cents rounded to one decimal place.

Year 3		cents
Year 2		cents
Year 1		cents

3. Based on your calculations above which of the following is true?

Passenger load factor has increased but revenue per seat flown has decreased. Passenger load factor has increased and revenue per seat flown has increased. Passenger load factor has decreased but revenue per seat flown has increased. Passenger load factor has decreased and revenue per seat flown has decreased