The term "load factor" refers to the ratio of actual output to the maximum possible output over a specific period. In the context of electricity, it measures how efficiently a power plant operates by comparing the energy produced to its maximum capacity. A higher load factor indicates better efficiency and consistent usage of the facility. In transportation, such as with airlines, the load factor represents the percentage of available seating capacity that is filled with passengers. A high load factor suggests that an airline is effectively utilizing its seats, which can lead to increased profitability and reduced operational costs.