Capacity Utilisation
Percentage of available capacity actually used.
Formula
Capacity Utilisation (%) = (Actual Output ÷ Maximum Possible Output) × 100
Real World
During COVID-19 lockdowns, airline capacity utilisation collapsed to under 20% for carriers like British Airways, meaning fixed costs (aircraft leases, staff) were spread over far fewer passengers, massively increasing cost per seat.
Exam Focus
Show the calculation working clearly, then interpret the result — answers without interpretation rarely achieve top marks.
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