I am no fan of the airlines and think that they often lie and mislead passengers to avoid paying compensation for cancelled flights. The rate of cancelled flights is significantly lower in Europe.. could this be because airlines have to pay compensation, even if the reason for the cancellation is not their fault? Unless the airlines are suggesting that Europe has less weather, less technical difficulties or less congested airspace...the only reason for the big difference is that in the US they can do it with impunity.
On the issue of cancelling flights due to low passenger numbers the airlines will never admit to doing this. I think it is rare to be honest... cancelling one segment can have horrendous knock on effects throughout the system as it puts aircraft and crews in the "wrong" place. That is not to say is doesn't happen however, particularly when one AC goes tech and there is no ready replacement. The problem is trying to get someone to admit it... airline staff routinely lie to customers and it is now so endemic I don't think any of them think there is anything wrong with it.
The lack of regulation is the primary problem, until that is fixed, nothing will happen.
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