Expensive fuel -> expensive flights, so what?

The price for flying will go up. So what? Okay, it is a bit annoying for people travelling for business because it will increase the operative costs of the company. But the prices for flights are anyway much too low, especially in tourist class. Why should any idiot be in a position to fly to New York for less than 700 Dollars? It's ridiculous! But when you ask him how to get from here to Arosa he asks if Arosa is a new marmalade. I never understood why holidays in the Dominican Repuplic should be less expensive than holidays in the south of France for example.
Recently I saw a lady in a documetary about some airlines starting to charge check-in fees for each piece of baggage and oversize fees for cabin carry-on. It was a low cost carrier. The lady complained: My flight that was originally 20£ is now 100£ *whine*.
My comment: Yes, and that's exactly what it should have been from the beginning. Or even more.