In a high-flying episode of his informative series, Wendover Productions explained the science behind the cost of airline flights, the cheapest days to fly, the different codes used in pricing and how the constant competition within the industry has caused airlines to lower their prices, particularly at larger airports.
It’s all about competition. Different routes of the same distance cost different amounts generally not because they cost different amounts to operate, but because of how much the competitors are charging. This is part of why flights into small airports are so expensive—because they lack competition. …In all, the truth is that prices reflect what people will pay and so people will pay what flights are priced.