Should I lower the prices?

[ArmaghanJalil]

Case Scenario:

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...

[gazzz0x2z]

There is still plenty of place. If RI is 100 & LF above 70%, no need to lower the prices.

[Aoitsuki]

don't lower. Problem is the public (demand) does not know your airline exist
just wait for them to grow.