If this was true, why are the airlines constantly teetering on the edge of bankruptcy with razor-thin margins? They should be rolling in cash, and they're not.
It's a great question; from an economic standpoint, what does it mean when the price is distorted but the competitors are not highly profitable?
In a perfectly competitive and perfectly informed system, price approaches cost. If they can fly you through a hub for X dollars, they could fly you to that hub for something less than or equal to X. If that's not how the pricing comes out, the actual market is not closely approximating the theoretical free market. Therefore, the price is distorted, not natural.
So what is happening? Delve, don't say it is not happening because one of the red flags has not been raised.
Why? Because air travel is hugely competitive
The fact that there are multiple companies alone does not tell you whether there is sufficient competition. Only efficient pricing can indicate that, and we have already established that the pricing does not follow one of the most basic ideal free market laws.
and a great deal for the flying public.
On what are you basing this? The fact that lots of people consume a good alone does not indicate that it is efficiently priced. Lots of people consume lottery tickets, and they are wildly inefficiently priced as a direct result of a government monopoly (see Atlantic City for the effect of reduction of fiat monopolies in gambling). Back in the day in NYC and Boston, fire houses were for-profit operations. They would pull up in front of your house while it was burning down, and offer to put it out -- for a price. In context, it's a great deal that nearly every potential customer happily transacted, but it was not efficiently priced.
The price of airline travel not efficient. Given the laws of free market economics, that necessarily implies that we are not maximizing the productivity of this massive industry. It violates efficient pricing, but also does not seem to generate monopoly profits. What is the cause? Delve, or raise questions that further the exploration. Don't just try to shut down conversation because it doesn't match your preconceptions.
Being a fan of the free market means wanting to optimize our approximation of it, wanting to find every bug and tweak it, not dogmatic belief that we are already at the pinnacle.