Most of the more profitable markets have high competition not only by other airlines but also other forms of transportation. Very few airlines are swimming in cash and even those are only a couple bad years away from bankrupcy.
Most people are ok with terrible service because they save money.
Doesn't stop them from complaining, though.
And yes, "cheapest" includes taxes and all fees.
You can fly from New York to Paris non-stop for $150 if you are patient and flexible. (Please please please call me a liar.)
If you are not patient $500 is more typical.
Twenty years ago was a $800 ticket.
Thirty years ago that was a $1000 ticket.
And you are not a liar - but your claim isn't true at all in Europe - see increased per-flight legislated fees and the loss of budget airlines. Price of flights between 2 destinations has increased by 25-40% in the last 5 years in most of Europe.
Thanks to efforts like increasing the per-flight fees "because of high inflation" (these fee increases are still going up several years later): https://www.nationalgeographic.com/travel/article/why-travel... and loss of airlines like Flybe.
You can still get the madly cheap hop flights, but they are often pricing in income from our flights (or accepting even negative returns by pricing above the per-flight fees) because the planes need to be where you are going to fly a profitable flight later.
So the old status quo where genuinely cheap flights could be booked on a 7 day basis (e.g. cheap thursday-thursday flights) has been replaced by convoluted patterns to get the cheap flights (you usually need to leave on Monday, return on Saturday (if your source airport has lower demand than the destination) or vice versa. I suggest based on flights in the US becoming cheaper, that this is due to government intervention.
I get saving the environment and all that. But let me pay more taxes monthly, don't charge the airline £15 minimum making a bunch of flights unviable. Don't make booking a holiday or conference flight so unpleasant and annoying. I always have to tradeoff wasting a day or two with paying 50-150 euros extra.
It's not the worlds biggest problem, but making that decision is a regular additional dilemma I didn't want in my life. I wish for the days when you could get just normal timetabled flights at good costs if the month (e.g. February) was unpopular for travel. Now those months really aren't cheaper.
Round trips in September are $386-500 depending on the day and duration of the stay. The $386 fare was for a tuesday-to-tuesday week stay and I might just take it, I will be bumping up against use-or-lose limits for PTO by then. There are fewer crowds in September and the weather is really nice.
Personally, I do argue that it's worth it having tickets 10% more expensive and forcing the companies to always allocate all passengers, treat people humanely and etc. It's even worth it the 25% increase to make them let people carry luggage and avoid all the troubles that come with the optionality. But most governments seem to disagree.
You are asking for people who fly without checked luggage (as I usually do) to subsidize you.
Anyway, the fact that you just assumed I personally fly with luggage is weird.
You can make the argument that airlines are companies that sell in flight beverages and also happen to fly a passenger airplane. The actual profit comes from an unusual sources, like deals with credit card issues for a "rewards" program that gives you frequent flyer miles
