Southwest did lose 10% of its market value overnight, so it seems the market is punishing them. Given how much executive compensation is in stock, a lot of senior level folks at Southwest are likely feeling some pain (or, least, as much pain as any very rich person ever feels).

> Instead what people do is find the lowest fare possible, all other considerations be damned.

That's an over-simplification. Yes, passengers are very price sensitive. But whenever I talk to friends and family about travel, it's become increasingly clear that they factor predicted quality of service in to their choice.

I don't fly United and try to avoid American. I'm certain that many many people will hesitate to fly on Southwest after this. People aren't stupid and no one wants to roll the dice on an entire vacation just to save twenty bucks.