" For goodness sake Flybe, if you cannot offer a competitive price on certain flights then surely it isnt worth offering that product. Just concentrate on flights that you can be competitive on."
I'd think the reverse is true - being able to charge "high" fares is an indicator of an attractive ("competitive") route.
Any business should concentrate on where it can make money - so if FlyBE manages to sell sufficient seats at mentioned higher prices, then that's what would appear prudent from a business perspective...