I think that airlines have a moral hazard with bankruptcy as a safety net. The changes will hurt the industry but with bankruptcy to fall back on, the market will continue to be too saturated and the red-ink will continue.

As my industrial organization professor said in lecture, if you reduce the fares by 50% then you have to double the butts in seats to break even. While not nearly all the fares were slashed by 50%, its still going to take alot of extra passengers to make up for the cuts. Now multiply this by all the airlines in the industry and it seems unlikely that the 'black' will be had anytime soon.

Just my 2 cents anyway...