This is Capitalism, it is a consumer based market. The public think their entitled to dirt cheap prices. Heck look at the merger talk in the newspapers... across the country the reaction to possible mergers are all negative in the media because it will create higher prices for the poor consumers. Congress even is weary to allow mergers because it might anger voters who want dirt cheap tickets!
The oil companies have figured out how to manipulate the system, its about time the airline industry followed their lead.