Ratpoison et al - in a competitive leisure market where the consumer purchase decision is primarily driven by price, Jetstar has to discount considerably to secure the sale. The cheapest fare always wins.
From there, the airline can extract additional revenue through ancillary streams available from various points in the customer corridor. This is where, in particular, LCC's actually make money. Yields are poor and margins thin. Lowest cASK's are key to maximising revenue returns.
Increasing fares will simply price Jetstar out of the market and/or will change the consumers decision to travel, as leisure is discretionary.
I also understand the domestic pool of ~$700M in 2012 is down to less than ~$100M in FY14.
Inept - I think not…