This will reduce the join size significantly, and only requires a small modification:
proc sql;
create table CARTESIAN as
select a.*, f.FLIGHT_ID
from AIR_CONCENTRATION a
,(select FLIGHT_ID, min(TIME) as MIN_TIME , max(TIME) as MAX_TIME
from FLIGHT_ACTIVITY
group by FLIGHT_ID) f
where MIN_TIME <= TIME <= MAX_TIME;
create table FINAL as
select c.*
, f.ALTITUDE
from CARTESIAN c
left join
FLIGHT_ACTIVITY f
on c.TIME =f.TIME
and c.FLIGHT_ID=f.FLIGHT_ID ;
quit;
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