5. Not only that, they are trying to maximize the profits by squeezing those who don't plan ahead
The prices start out high because there might be a high demand for a particular flight on a particular day. When and if such demand doesn't pan out, they lower prices to sell more seats. If that doesn't work they will lower prices more, but if most seats sell out they might raise prices to maximize the profits on the few remaining seats which will likely be in high demand at the last minute. So it's very easy to find out the guy sitting next to you paid twice or half as much as you did.
Their operating expenses are not dynamic at all. Fuel costs are often under contract for the entire year and labor costs are pretty static as well.
Personally I think that just because of the wide variances between prices it's a scam. The airlines (at least some of them) are milking some customers simply because they know they will pay more under certain circumstances.
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