Most of the world's most profitable airlines right now are discount carriers. I believe the airline industry has changed from the past where now the most profitable business model is one that aims at the average customer. I believe we will see the Legacy carriers shrink and the LLCs expand.
Alliegiant, AirTran, SWA, Jetblue and Spirit all had financially successful years in 2009, some like AirTran, even record-breaking.
Worldwide, Gol Airlines, AirAsia, VirginBlue, Ryan Air, Easyjet etc are all very financially successful airlines.
In another industry, who's more profitable, Walmart or the Publix upper end grocery chains?
Its time to give Joe Six pack more credit