"Cost of providing the service"
How the ACCC can swallow the "...we're not losing money on these fares..." line is beyond me. If any other operator tried it there would be an uproar from the Jetstar parent.
What really worries me is that Joe Public really believes that this represents the cost of providing the service (did I say service; sorry, meant to say product). JP now really believes that aviation staff are overpaid, and will be expecting 5 cent fares every time he wants to travel.