Why is the price of airline ticket so fluctuating?

Question

Why is the price of airline ticket so fluctuating?

Answer 1

Airlines have done a huge amount of data analysis on booking trends and use it to maximise revenue from a flight.  They also track booking data for particular flights, and adjust their pricing accordingly.  Often on a minute by minute basis.

Early in the booking cycle they sell relatively cheaply to get early cash and secure bookings.  Later, as the flight starts to fill, the laws of supply and demand mean that prices rise.  As the departure date gets very close any remaining seats are sold quite cheaply to ensure that they at least get some revenue from those seats.

Answer 2

because gas pricing are fluctuating so much.  Also airlines have groups of seats designated at a cheaper price.  Once they sell that many seats the price goes up.  So you may see a fare for $200 on one day and look again an hour later and it has gone up because the last seats at that price were sold.