That's because if you supply 100% or more of the demand on a route, your load factors will start to suffer when a competitor starts to offer flights on that route.
For example, if both competitors supply 100% of the same route, both will end up with 50% load factor, considering both airlines have the same image and have similar aircraft, so they will be earning half of what they could be earning per flight. On the other hand, if you open one or 2 flights on a busy route (at least 1000 pax/day) on a route oversupplied by 200-300%, your load factors will be always high, 80-100%.