Originally Posted by aa4ever

I agree that people like you are picking up a disproportionate share of the cost. And, as such, it would be logical to make the FF program more rewarding to people like you (i.e. make it like hotel programs where you get points/dollar). However, if airlines were to cut capacity enough that the cheapest fair for your route was actually $1500, would you keep flying? Likely, you would have no choice. But the family paying $199 for the trip would stop doing it. Thus, if the airlines cut capacity enough, they will keep those high-fare passengers (who MUST fly) and lose the low-fare paying ones. And once the airlines have reached a supply-demand equilibrium (where they can charge what they want b/c there is no excess supply), they have lost the need to lure people in with benefits (at least in my mind). 100 individuals who fly on 1 $1500 ticket per year each are worth no less overall than 1 individual who flies on 100 $1500 ticket.

J. Edward -- I agree that the industry is trying to cut off the lower-fare part of the demand curve. And when they do that enough, all they will have left (in theory, at least), is the high-fare part of the demand curve. They will eventually cut supply until it meets demand at a reasonable price-point for them.