Airlines have got to make money somehow.
Like him or not, Willie Walsh was saying that this year, per passenger flown, there will be $2 of profit made across the board. Clearly some airlines will be better than others, but with margins like that, what is the incentive to give more away. Airlines lost a combined $95B during the Covid years.
Some longer haul routes operated by full service airlines are horrendously expensive at the moment, and has been for some time since the re-emergence from Covid. Fares do need to increase, people need to accept that… the days of cheap tickets are over.