290 people in reasonable comfort paying a FAIR fare (not discounted to the point of absurdity) should be able to generate enough revenue to make the flight viable.
Nope. folks will never pay more if they can pay less with another carrier. Friends of mine who have the cash to travel in Premium Economy will not pay. They were upgraded once and enjoyed it (and they are both tall people) but said that they would never pay the fare out of their own pocket.
And if the airlines started allowing all of us to book directly through the Internet instead of through Travel Agents, they could make even more.
I think that you will find that they cannot wait for us all to do exactly that!! Cut out the middle man? Control the whole process from first enquiry to lost luggage? That'll do nicvely.