It is not a FACT that consumers buy air travel only based on price. It may be an important consideration, but it's not the only factor in a purchase. There's a whole spectrum of travellers each with its own weighting of importance, which is not constant. It's the role of an airlines management, including but not exclusively, the sales & marketing operation to focus on the areas in which it can be successful, and possible walk away from those in which it can't.

If you go on believing incorrectly the only airline seat that can be sold is the cheapest, then CO ought to have been re-modelled more than 5 years ago to have a lower cost base than WN, B6, F9 etc. It sounds like you'd better start hoping you're wrong.