Newsstand - Cape Air spreads its wings

HYANNIS - Buy a Cape Air ticket, and you'll get a cramped seat that doesn't recline, on a plane that doesn't have a toilet, on a flight that doesn't offer pillows or peanuts.

Yet while higher fuel costs and a travel slowdown have caused major carriers to cut capacity and several regional airlines to shut down, Cape Air this year expects to post its largest annual growth ever, because of its strategy of offering frequent flights on small planes to hard-to-reach communities.

More at:
http://www.boston.com/business/articles/2008/10/16/cape_air_spreads_its_wings/

From Boston to cape cod the flight is what? half an hour? Get serious.

Most of their service (especially in the NE) is EAS-subsidized. The feds are paying them (using tax revenues) to make those profits happen. So yeah, they are growing, but it isn't because they are running a tight ship or a great operation necessarily. EAS routes have a habit of changing over every couple years. It'll be interesting to see where they are in 2010.