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

It’s usually because any flight with a layover is cheaper than a direct flight, even if the direct flight is one leg of the flight with a layover. The layover allows the airline to fly more passengers through more airports than the direct flight, so it’s still worth it to discount layover flights.