[jimworcs]

Thanks for this non-analogous analogy, but the situations are not the same. Take off the "defend the airlines at all costs goggles" for a moment and look at this from a moral point of view.

In your example, Southwest fulfilled the only contract they had with the passenger, but were tardy in doing so. Cathay Pacific failed to fulfill their part of a separate contract because the customer failed to show up, so this is not their fault. This falls into the category of "stuff happens" and the only hope is via insurance. You could argue (and in your case PHX, you frequently do), the passenger should have allowed sufficient time to take account of the fact that the Southwest flight might be delayed. Of course, in days of old, CP would have accommodated the passenger on a later flight in the name of goodwill, but that is another story.

In the second example, Delta rendered it impossible for the passenger to fulfill the second contract, by failing to deliver the first contract. Although the contracts are separate, they are inextricably linked, neither party can fulfill the second contract, unless the first contract is fulfilled. In this case, Delta is entirely responsible. There is no failure by the passenger. Therefore, Delta is morally, and I think, legally responsible.