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So, apparently swiss aviation regulator has restricted the number of passengers on a single historic aircraft as a permanent safety measure (in response to an accident from 2018).

If we ignore the effect on the price (by way of reducing total passenger throughout), I think this actually reduces safety. Ensuring safety of an aircraft takes work that mostly doesn't change depending on the number of passengers. Thus, aircraft with fewer passengers require more effort per passenger. So if the amount of passengers remains constant, we end up with more work (incl. more work for authorities) for the same level of safety.

Is there a mechanism (other than reducing the total number of participants) that could cause this change to improve safety?

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