Why are flights with layovers in the opposite direction cheaper than direct flights?
In: Economics
Years ago I had to fly from Dallas to San Francisco for my grandfather’s funeral. Direct flight on American was $1,300. There was a flight from Austin to SFO that was only $400. It was a connecting flight that stopped in Dallas so everyone who paid $1,300 could get on.
The best explanation I heard was that American had no competition on the direct flight, but several airlines could fly connecting flights out of Austin.
I wound up paying $75 for a Delta flight from DFW to AUS, just so I could fly back to Dallas and then SFO.
There was a chance that my return could be screwed up and I would wind up in Austin, but we landed at DFW and I just went home.
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