[QUOTE=ClueByFour]I've said this elsewhere, but it bears repeating:

US has decreased capacity in an increasing market. Those high-school kids who understand a demand curve even know that this will increase profitability.

The problem is that the strategy won't last forever,


LUVs stategy of growing 10% a year and having fuel hedges cannot last forever either? I guess you could say that about all plans? Plus no one every said the plan is to continue shrinking? It was to right size the airline for the current market conditions, then to grow smart...They will not play the old legacy market share game nor price war game except on a very small scale.