You are correct. As much as we like to bash airlines and their decisions, and liking low fares and quality service myself, it's objectively one of the worst businesses imaginable. Extremely high risk, low margin. Every year about a dozen airlines go bankrupt, get merged or bailed out. A small increase in the price of oil is a major risk for most of them.

Most of the more profitable markets have high competition not only by other airlines but also other forms of transportation. Very few airlines are swimming in cash and even those are only a couple bad years away from bankrupcy.