In a historical context, you are right. Warren Buffett once said something to the effect of, "A far-sighted capitalist would have shot down the Wright Brothers" [0]

More recently the combination of consolidation, less competition and lower fuel costs have created record profits. [1] [2] [3]

Also, machines are already doing most of the flying. "Autopilot" comes from aviation. :-) Automatic planes are actually a less tricky problem than automatic cars, as there's much less random stuff to navigate in the air. [4]

[0] http://www.economist.com/blogs/gulliver/2011/12/business-quo...

[1] http://www.nytimes.com/2016/02/07/business/energy-environmen...

[2] http://www.usatoday.com/story/travel/flights/2016/01/12/airl...

[3] http://www.theguardian.com/business/2015/jun/08/us-carriers-...

[4] http://www.cnn.com/2012/03/24/travel/autopilot-airlines/

On "less competition" — I don't know, maybe in the US. European airlines are currently busy with outcompeting each other to hell. I fly Swiss (that one that once was a premium airline, with silver dinnerware etc.) Twice a week. Average ticket price? $50 (Geneva to Barcelona). Trains are way more expensive now.

Yes - I think this is a US-centric article.

I believe the airports themselves need more automation.

A modern large airport is the pinnacle of efficiency. Most of things there are already quite automated, or on the way to it.