Originally Posted by
wobbly wings
As you observe, even at 400$ it is still relatively cheap. In a nuthsell: Pax are not paying the real costs as much is subsided. Inevitably at one point this will snap and there will be a large fare adjustment.
I just don't see that happening. Anytime demand increases to match the supply, there is a new player who wants to step in an make a buck and that in turn adds capacity and suppresses prices.
Airlines can be profitable at the current fare structure, and some are, but the legacy carriers with their high overheads will continue to struggle and continue to lurch into and out of bankruptcy until they radically change their structure.