GMAT Critical Reasoning (CR) | Re: NorthAir charges low fares for its economy-class seats, but it provide

HiGMATNinja / Experts
I was able to identify paradox correctly here:
Fact 1: Market research shows that economy passengers would willingly pay more for wider seating and better service, and additional revenue provided by these higher ticket prices would more than cover the additional cost of providing these amenities
Fact 2: it has decided not to make these improvements in spite of NorthAir (NA)
is willing to increase its profitability.
Why would NA do so is goal of my answer.
I could eliminate