ScottC, I share your general sentiment, but here's another way to look at it:
It's hard to say how much it truly "cost" the airline in this case. I suspect that most of these people had no prior plans to visit PV and only went and chose Business Class because of the super-low fare. So for these passengers it's not like the airline "lost out" on the difference between the full rate vs. the $59 fare, because they would not have even bought tickets otherwise. The airline really lost only if the $59 passengers took up seats that it could have sold at full rate to other passengers. Without a crystal ball it's hard to be certain whether or not these seats would have gone out empty otherwise, and if they were going out empty anyway, the airline's only real loss was the difference between the $59 fare and the actual cost to carry an extra passenger (fuel, catering, frequent flier miles, etc.).