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The good and bad news is that fares are down, he said: "With lower fares, you find people who couldn't do it before are now on the plane".
And as local residents drive to bigger airports with lower fares, or forgo flying as it gets more expensive, small airports feel the pinch even more.
Under Texas Pacific's plan, United would pursue its traditional business customers with lower fares, rather than set up an alternative carrier to compete with Southwest and others for leisure travelers.
Some airlines loosened the purse strings and committed to aircraft purchases or leases that the industry could ill afford overall: analysts talk of overcapacity, which can be good news for passengers in the short term with lower fares to fill seats, but may not prove sustainable.
The bet, which would have good odds in a growing economy, is that business travel between Europe and the United States is growing and that premium or mostly premium niche carriers can take a chunk of that market with lower fares and attractive products.
"With a low cost of operation and spacious cabin, the A220 will allow us to provide passengers with lower fares and a high quality, comfortable flying experience.
Similar(52)
But Southwest might respond with even lower fares and "it just becomes one vicious cycle".
O'Leary said he expects "a Herculean growth" in traffic during the quieter winter, with slightly lower fares and high forward bookings leading the airline to predict 20% more passengers.
With each previous reduction, Uber has seen the number of trips per driver increase, which means that even with the lower fares drivers end up making more money.
When business travel fell off last winter, corporations began negotiating with airlines for lower fares, and those negotiations have intensified recently as business travel begins to resume.
Southwest's move is forcing US Airways, which emerged from bankruptcy earlier this year, to search for ways to cut costs, so it can afford to drop its ticket prices in order to compete with Southwest's lower fares.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com