Well prices for those customers were relatively inelastic (think, business flights being comped by the employer, airlines having quasi-monopolies on routes) so

Well prices for those customers were relatively inelastic (think, business flights being comped by the employer, airlines having quasi-monopolies on routes) so the airlines knew they could raise prices without impacting demand. Conversely lowering prices likely wouldn't impact demand either. The sensible thing to do under normal market conditions would be to fly fewer flights, but when a central planner is setting your prices it changes the logic.