Re MANFOD -
It's pretty annoying that capacity is being decreased and also that people are seemingly under the illusion that the demand isn't there hence the downgrading of equipment. The problem is the prices. The prices certainly don't point to any problems in filling seats. It all smells to me like airlines are consolidating operations so that they can charge top dollar for a smaller amount of seats.
An example of this is I want to make our yearly summer trip to Florida and to fly to the USA in mid-July it will cost me £5,5k for 5 people to get to Miami. Considering it will cost 2k in food, at least 2k in hotel costs... Going to Florida just isn't possible this year. We have even considered going MAN-MCO with Virgin and then driving down. Low and behold though Virgin are charging exactly the same for one flight as it would cost to go on 2 via JFK/ORD with AA or with US Airways via PHL/CLT to MIA.
I paid 2,5k for 5 people to go via LHR to MIA with BA a few years ago, why it is double this year across the board with capacity being increased I just cannot fathom.