There is a general rule of thumb that the % of passengers an airline carries in a given market is not proportional to the % of flights it operates. For example, if two airlines (A and B) operate on a route and airline A has 60% of the flights, then airline A will carry more than 60% of the passengers. Presumably this is because airline A makes it easier to find a flight at the time you want to travel.

This is what the airlines mean when they say that passengers prefer high frequency. But I'm sure most people would choose a schedule with fewer flights if they knew it would significantly reduce delays.

The worst example of this was the UA shuttle where UA was scheduling flights between SFO and LAX every 20-30 minutes. There were so many flights and so many delays that half the flights were cancelled on many days anyway.