I think the calculation has been made that it isn't the fares that are keeping people from traveling right now and that drastically cutting the fares will result in slightly fuller planes-- but lower profits due to the lower fares. I don't think they are wrong in that supposition personally.

Keep in mind, not everyone thinks like an FTer-- not even most people, really. Some people just plain won't fly right now and they don't care what the fare is. Personally I think they are nuts (and cowards) but, in the end, I'm sure the airlines will attempt to "lure them back" with some low fares.