Demand from A 2 B = 200 pax
My supply = 44 pax (ATR 42)
LF gets to 99% so I start increasing prices to maximize revenue (as I have read that optimum LF is from 80-90 to maximize revenue)
Competitor comes in with 100 seats supply during the process and my LF and Revenue starts falling with 10-15% each week (right now around 70%)
Even though demand is more then supply, should I decrease my prices to get some LF back or should I just let it be, and pax will slowly return back?
Se an example of scenario below...