There are several factors involved but really, it's pretty simple: rising jet fuel prices, staff shortages, high demand, and capitalism. Airlines don't have to set prices at industry standard, especially if they dominate an airport. At airline hubs, where airports cater to one major airline, the competition that would create lower prices isn’t as strong—when nine out of ten flights are from one airline, they can set their own prices and passengers have to deal with it. But this doesn't mean you have to overpay for flights. Even if “average” fares are expensive, you don’t need to worry about averages. You just need to worry about booking when the price is low.