sharktooth
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The reality is that a large percentage of the flying public is made up of people who truly cannot afford to fly at fare levels which would allow the airlines to sustain themselves.
I don't know what you mean by "large percentage" but if above 50%, I'd say you are wrong. I would think that a slight fare increase would put airlines in the black.
If there is less demand due to higher fares, less people will fly, the skies will be less crowded, and the remaining flights will operate more efficiently
I feel that is a stretch. One of the reason skies are so crowded is the use of the RJ, taking up mainline runways and limiting each "slot" to less than 100 passengers.