I am not using connecting passengers on my $1 routes; neither am I making several hundred per passenger off of IFS.
The profit off these routes barely covers - but does cover - the total cost of owning gates/planes, maintenance, and salaries. As BookSiberia hinted, there is a deeper game than short term profits at play.
Even within that deeper game, there is still a more efficient way to use the aircraft currently flying these routes.
The key to this game, however, is making the right tradeoffs between efficiency with time and efficiency with resources.
I call BS. You're severely underscoring these costs, as 550 pax buying $1 tickets do not cover the maintenance costs on a 747.
Therefore, scam IFE and/or IFS must be in play.