while the airlines can incrementally squeeze you an inch here and there, there's no incremental response by the consumer.
As a 6'4" dude, it's clear to me that seats are tighter than 5+ years ago. But while they can whittle away over time, my only market response is to make a big jump to Business or First class.
Avg domestic roundtrip Econ fare last year: $378
Avg domestic roundtrip Business class last year: $1845
I can see how those business class fares could be inflated because they're probably being comped to some degree via rewards programs, and it makes everyone feel better to reflect that higher pricetag.
But as a consumer, I have to 5x my cost, or just try to get a window seat and lean off to the side. No good way for market forces to let me make small spending adjustments in response to small design changes.