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Yes, you're understanding it correctly. And conversely, if the air sac is too small, it's becauser the egg isn't losing enough moisture, and you should lower the humidity.
Gogo10131: I'd say first of all to check that your thermometer and your hygrometer are actually accurate. You can do this by calibrating them, and you'll find instructions somewhere on this site. If you find out that your temps and humidity were what you thought they were, i.e. 100F and 50-55% humidity, then the problem was most likely either with your humidity, or with a lack of oxygen late on in the incubation.
Like RGWright says, ideal humidity depends on a lot of factors. Personally I'd say 50-55% was WAY too high. But for RGWright, it isn't high enough. This is why humidity questions can cause so much confusion. People usually just recommend what works best for them, assuming that it will also work best for someone else, and that really isn't always the case!
If you want a rock solid way of figuring out your ideal humidity, weigh your eggs. Chicken eggs should ideally lose 11-15% of their starting weight by day 18. This is due to moisture evaporating through the shell, and like Meara asked about, it's why the air cell gets bigger as the embryo develops. So you can weigh when you're candling, and assess whether they're losing too much weight or too little as the incubation progresses. You'll find out for sure if your humidity should be higher or lower. You should be able to figure yout your very own ideal humidity. And hopefully your hatch rate will start to improve!
People might be able to give you more advice if you could supply some more information about your hatches. Were they shipped eggs, or not? Did you open the bator at all during lockdown? What day did your successful chicks hatch on? Did they hatch by themselves or did you have to assist them? Was there any excess moisture in the egg shells? Was there any bits of membrane stuck to the chicks? Were the chicks at all crusty or soggy looking? Strong and healthy, or weak and sickly? Any deformities? Grown into healthy adults? All of this would help to figure out what's been going wrong...