Quite the opposite. You reckon taking planes out of the skies will lower the cost flying? Supply and demand.

Yes, it will likely raise prices.

My point/question is whether this will reduce air travel and increase demand for rail.

Those airplanes aren't going to be scrapped. Demand for flights hasn't reduced much. Other airlines will buy up the airplanes and put them back into service.

I think OP meant whether this might "lower the demand" for air travel...due to the expected spike in prices