[Ahwleung]

Wouldn't the failure of competitors and decrease in available flights result in the opposite? The surviving economy airlines will have more demand, higher prices, and will do better as a result?

Disclaimer: I have no knowledge or expertise in this field other than being subscribed to Wendover Productions.

[glofish]

In an optimally functioning world yeah - in an artificial world, where all of them lose money and are propped up artificially, one failure will lead to the rest of them perhaps losing a little less money ...

or it could be that travel drops - fewer flights overall may mean fewer passengers for all of them - most flying is purely leisure