Ozzy - agreed "carefully managing domestic and European demand" just means giving it away to competitors, as happened with LPL and LBA years ago. I'd query one point on your analysis -
They can do this with some confidence too, as previous recessions have shown that people DO still take vacations after a downturn - but they often choose to trade down to a lower budget option for a couple of years. Hence cheapie flights to Spain and Turkey come back much stronger than upmarket offerings to Florida and the Caribbean.
Let's not forget that those that are still in full time employment have done well economically this year, a full wage and nothing to spend it on. I've seen reports that the top end of the market is seeing huge interest from those wanting a "holiday of a life time" when they can travel again, having missed out this year.