Why prices are differently charges by aviation industry
Answers
The major expenses that affect companies in the airline industry are labor and fuel costs. Labor costs are largely fixed in the short-term, while fuel costs can swing wildly based on the price of oil.
For this reason, analysts pay more attention to fuel costs in the near-term. Two-thirds of the costs of flying an airplane are fixed, so changes in fuel costs can swing a flight from profit to loss depending on how many people are on the flight.
Historically, the airline industry continues to be brutally competitive, even though the business of flying people all over the world and country has become an integral part of human life. The cost of flying continues to trend lower. The Internet has also created greater price transparency, reducing margins.
Price discrimination involves charging different prices to different sets of consumers for the same good. Firms can charge different prices depending on several criteria: Quantity bought (e.g. lower unit price when higher quantity is bought).
⏩As you might expect, fares can change because airlines purposefully raise or lower them, or start or end fare sales.
⏩There is another reason why the lowest available fares fluctuate.
⏩It is because various fare categories are constantly becoming sold out or getting re-opened as other travelers buy or cancel seats.
Hope it helps❤️