Quantcast

Why airlines avoid offering cheap last-minute flights

These Frequent Fliers Are Done With Loyalty Programs
JetBlue accepting Venmo as payment method for flights purchased through mobile app
United Airlines stock rallies on results, as growing demand wasn’t just about premium seats
American Halts CRJ-200 Operations
Shanghai Airlines to Launch Casablanca Route
Delta employees to receive an average five weeks of pay in annual profit sharing
Akasa Air faces DGCA heat for lapses; warning letter issued to airline's accountable manager
Indigo Eyes European Market Amid Intensifying Competition with Air India
Air India to operate daily Delhi-Prayagraj flights for Maha Kumbh
Engine maker agrees to compensate WizzAir for grounded planes
Turkish Airlines’ flights are riddled with bedbugs, passengers say
British Airways frequent flyers react to Executive Club changes
Inside the short-lived, men-only flights where kids and women were banned but cigar and pipe smoking were rife
China steps up drive to break Boeing, Airbus grip on plane market
Heathrow’s New York service clings to spot in top aviation routes
Airline praises pilots in crash-landing where both died but nearly half the passengers survived
Mexico state airline to buy five Embraer planes next year
A record number of people are expected to fly over the holidays. That's good for travel stocks, but not for passengers.
American Airlines technical issue sparks travel chaos on Christmas Eve as flights heavily delayed after being grounded
Why United Airlines has had such a stellar year despite being Boeing's biggest customer
JetBlue nixing routes between multiple major cities, reducing several others
Airline Stocks Led The Travel Industry's Record 2024 Rally. Here's What's Next.
It’s beginning to look like another record for holiday travel
Qatar Airways cleans up at the World Travel Awards
All of the strikes at European airports this winter – find out if you are affected
Meet the CEO trying to turn around Air India, the 92-year-old airline with a pile of problems
Skiplagging: Unpacking the Risky Travel Trend That Involves Tricking Airlines
Qantas engineers walk off job on one of the busiest travel days of the year
South Korea to safeguard competition after Korean Air, Asiana merger
China Southern returns to Adelaide
Why airlines avoid offering cheap last-minute flights
Policy
Webp 9d8e4n9zvnq6npvse1f7c4oouh5n
Airbus A380 | Airbus

The practice of airlines offering cheap last-minute flights is not as common as one might think. While it seems logical that airlines would lower prices to fill empty seats, the reality is more complex.

Airlines employ dynamic pricing strategies to maximize revenue by charging different prices for tickets on the same flight. This approach allows them to extract the maximum price passengers are willing to pay. The phenomenon of passengers sitting next to each other having paid different amounts is often due to various factors influencing ticket pricing.

Interestingly, airlines tend to increase ticket prices as departure dates approach rather than offer discounts. A clear example is a Delta Air Lines flight from New York's JFK Airport to London Heathrow, where a last-minute ticket can cost around $700 compared to $200 when booked in advance.

Get the Newsletter
Sign-up to receive weekly round up of news from Sky Industry News
By submitting, you agree to our Privacy Policy and Terms of Service. By providing your phone number you are opting in and consenting to receive recurring SMS/MMS messages, including automated texts, to that number from our short code. Msg & data rates may apply. Reply HELP for help, STOP to end. SMS opt-in will not be sold, rented, or shared.

Legacy carriers like United Airlines, American Airlines, Delta Air Lines, British Airways, and Virgin Atlantic have developed sophisticated methods for distinguishing between business and leisure travelers. These include minimum stay requirements that prevent business travelers from accessing lower-priced tourist tickets.

Volodymyr Bilotkach in "The Economics of Airlines" explains: "In most cases, the airlines are better off waiting for a last-minute business passenger to come along and pay the full fare." Business travelers typically book closer to departure dates and are willing to pay higher prices for convenience.

For low-cost carriers such as Ryanair and easyJet focusing on leisure travelers, finding last-minute deals may be easier since their target market differs from that of legacy carriers.

Organizations Included in this History
More News

United Airlines has announced the issuance of travel waivers for passengers whose flights were affected by closures at London Heathrow Airport.

Apr 2, 2025

ITA Airways announced that flight AZ806 managed to land safely after a brief hold due to nearby missile activity.

Apr 2, 2025

EVA Air has announced the reinstatement of its Premium Economy Class on the Seattle route, with three weekly flights scheduled from March 8 through July 27.

Apr 2, 2025

Emirates Airlines has announced the launch of a new door-to-door delivery service called 'Very Important Parcels' (VIPs), promising the same level of care as provided to its passengers.

Apr 2, 2025

Cargolux has announced the transportation of two lions, Tsar and Jamil, from captivity in Ukraine to a wildlife sanctuary in South Africa.

Apr 2, 2025

Hainan Airlines announced that its Beijing–Oslo flight HU769 landed successfully in Norway.

Apr 2, 2025