Capacity Utilisation
Percentage of available capacity actually used.
Formula
Capacity Utilisation = (Actual Output ÷ Maximum Possible Output) × 100
Real World
During the COVID-19 pandemic, British Airways operated at around 20% capacity utilisation as most flights were grounded, massively increasing cost per passenger.
Exam Focus
Calculate, then evaluate — state whether high or low utilisation is better given the specific business context.
How well did you know this?