Phoenix -> Tucson -- Demand is about 65, he's got about ~115 seats there -- That's okay.
You've said he's putting 170 seats there, but he's not. There's a total of 170 seats counting yours.
Phoenix -> Flagstaff -- Demand is about 70, he's got about 75.
Again, you're counting your own seats. He's not even furnishing 100% of the demand some days, he's got PLENTY of room to put more seats on without breaking the rules.