With regard to income, 70% of something is better than 100% of nothing. Obviously, a major cost challenge is that the majors are being forced to meet the cost structure of Southwest, AirTran, JetBlue and others. In light of the fact that there is no significant service difference in product delivered, why should the passenger pay more? I for one am flying Southwest more and more. Why? The people are friendly, the planes are clean, I'm not going to get a meal on anyone I fly, and they have plenty of flights.
I used to fly Delta almost exclusively, to the point where I purchased Christmas gifts for the gate agents. No more. Why?
The have shelled the frequent flyer program for people like me and I can never cash in my miles for flights- "no seats on that flight, not on that one either." I won't fly Northwest unless they are the last airline running, as the last reservations agent I dealt with was so rude to me it just about ruined my day. United and Continental are much better.
In short, by gutting their inflight and airport service, as well as the frequent flyer plans, the airlines in general have beaten the customer loyalty out of the business traveler. I fly whatever is the quickest and easiest and least expensive and don't care anymore what color the plane is or if I get miles. This truly can't help the airlines bring up their revenues and margins.