Seriously? Folding one of the 5 best hands in holdem preflop just because your near the bubble? Thats a seriously weak play. I think you played this hand fine you were just unlucky to lose to an inferior hand. When playing MTTs you HAVE to go for the win to see any sort of +EV. The only possible thing you could have done differently was to shove pre-flop, the problem with this strategy is your only going to get called by better hands (well most of the time if your opponents know what their doing). Infact now that i look at your chip counts in this situation an open shove from UTG is probably the best play. The blinds are going to get pretty agressive from here on out compared to your chip count. You can't afford to pass monsters like AQ in this situation.

Shove em in and hope no on has QQ+ or AK.