Jensdad, it's not fuzzy-wuzzy but that's the way it goes- and it's not only the airlines, but other industries as well.
Like it or not, if an airline has 2 applicants exactly the same in qualifications and experience, then more often then not they will choose the one they perceive fits their image better.
That someone has a physical (cosmetic) disfigurement or blemish of course does not diminish their ability, but in a public-facing role it can make some customers uncomfortable or lead to awkwardness, of course they are going to choose the person who they feel will work more 'easily' within their team. You can't prove beyond a doubt that's what they choose on anyway, only suspect that they do....
Not saying it's right, just that it's how it seems to work.
In all honesty if you were dating two people equally as nice as the other, with the same qualities, but one was less physically attractive, in those early shallow stages I am sure as much as we'd all like to say otherwise, it's human nature to pick the one we perceive as more attractive to us... all other things being equal. Once you get to know people better, their attractiveness increases of course, but in the airline recruitment game, it's all about first impressions. There's no time for courting for them to "get to know you better"....
FYI I do not always agree with how they recruit but that's the way they do it. As i said to the OP, if s/he wants to better their chances, apply in countries where there are laws against choosing on physical appearance alone. But- if they don't want to choose someone, they will find an 'acceptable' reason....