Thunderball 2, I would agree with you except that Palmair PAX numbers this summer have been equal to that of previous years and as IDC points out and myself. Lots of people have already switched to the loco market. My suggestion is that the market here at BOH has settled down to those who will purchase flight only so they can get to their/ friends villas in Spain or those who need a package holiday. It is still much cheaper to take a 7 night IT holiday with Palmair than fly to Spain at £50 return and book a 6 night hotel stay.
Loco flights are great if you have a cheap place to stay when you get there, but if not a package holiday is always going to be the cheaper option.