That is the whole fallacy with the CO model. If I decide not to fly because I am not satisfied with CO’s program, and a seat that would otherwise be occupied (even an upgraded BusinessFirst seat) goes vacant, CO loses, as long as I would have covered my marginal costs.

More attention needs to be paid to marginal costs and marginal revenues.

If CO entices me on the plane a few more times per year (and the flight is not sold out), CO wins regardless of how inexpensive my fare is and regardless of how valuable in their eyes the seat may be.

I must add though that to consider a $500 Q fare to Europe as worth half the elite credits is the type of thinking that will leave both the BusinessFirst seat and/or the economy seat that I might otherwise occupy, vacant. Make it attractive for me to fly and make me feel good about CO and I will increase your business at the margin. (Of course, this has to be done in such a way that someone else will not trade down and revenue will be lost. It is a balancing act but I do not think CO is playing it well.)

At least I didn't say that you are the devil!

That distinction falls to Gordo himself...who doesn't have the balls and/or integrity to face us.