eli5: Why are flights with a layover in a certain city sometimes cheaper than flights to that same city?

Question

Let’s say for example I live in Los Angeles and a United airlines flight from LAX to JFK with a layover in DFW is $500 but that same flight from LAX to DFW is $600. How did I save $100 by adding an extra flight?

In: 2

Answer 1

Because you inconvenienced yourself by having to stop in between where you left from and your destination.

It also increases the revenue of the airline by adding in new customers.

Say a non-stop flight from point A to point C can carry 100 passengers. That’s just 100 tickets sold.

Now you add in a midway stop at point B.

So you have 100 tickets sold for the flight guaranteed, but 30 people get off at point B and 30 new people get on at point B heading for point C.

That flight now sold 130 tickets.

For you the customer wanting to travel from point A to point C, you have to deal with the slight inconvenience of sitting at point B while people get off and on. But the airline increases it’s revenue because they are able to service more customers.