Airlines use a sophisticated strategy called dynamic pricing to maximize revenue, meaning the price of a seat fluctuates based on real-time data. The core driver is supply and demand; as a flight fills up, the remaining seats become more expensive. Airlines also categorize seats into different "fare buckets." For example, the first 20 seats might be sold at a deep discount to stimulate early bookings, while the last few are priced at a premium for last-minute business travelers who are less price-sensitive. Other factors include seasonality (prices spike during holidays), competition on specific routes, and the flexibility of the ticket (refundable tickets cost significantly more). Additionally, "ancillary fees" for bags or seat selection allow airlines to keep base fares low while still capturing different levels of spending from different types of travelers.