ACCC's manager of infrastructure, transport access and pricing Matthew Schroder told a Canberra hearing of the regional air inquiry said they could only enforce the law they had, when asked about whether they could act against airlines that put their prices up during floods.

"As a general principle, the fact that an operator sets a price that the markets bears, doesn't act collusively, and doesn't act in a cartel and the like, generally doesn't give rise to a breach of our act," Mr Schroder said.

"Setting aside moral and ethical concerns, the fact that the only pie shop in town (for example) can charge an extremely high price for its pies isn't of itself a breach of the act.

Mr Schroder said the ACCC would have to take would-be price gougers to court and prove a breach of the act.

"We don't have a specific regulation for the airlines on pricing, including when they're the sole operator on a route," he said.

Senator Barry O'Sullivan raised the scenario of "the good people of Mount Isa who have to come down for some chemotherapy when the airfare goes from $900 to $1900".

Mr Schroder said he accepted the "justifiable anger" of communities where airlines put up the price due to the weather or other factors but the airlines didn't breach the law doing so.

When asked by Senator Rex Patrick whether such behaviour might be considered "unconscionable conduct" under Australian Consumer Law Mr Schroder said he would have to take the question on notice and pass it on to the ACCC's enforcement team.

Senator Patrick asked specifically to find out what threshold would be required to invoke the unconscionable conduct ruling, whether the ACCC had ever used that ruling and whether it was a tool that could be used in the future and if so, how.

The Inquiry asked for a response on questions taken on notice by April 15.

The Inquiry is due to report on June 27.

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