How does airline pricing work?

How airlines price their flights can seem like a mystical formula nobody truly understands. At times, it can change by the day or even by the hour. But there's a lot that goes into the price passengers pay beyond simply supply and demand.

How do airlines calculate flight prices?

Flight prices come down to two main factors: distance and demand. When demand is low, airlines drop their prices to fill seats. When demand is high, prices rise. It's straightforward supply and demand but airlines manage it with a lot of sophistication behind the scenes.

Airlines divide seats into price "buckets." As cheaper seats sell out, the next tier opens at a higher price. This is why the same flight can cost significantly more if you book later — it's not just about timing, it's about how many seats remain at each price point.

Pricing also varies based on the type of airline (budget versus full-service), the route, and the cabin class. But demand remains the single biggest driver of what you'll pay.

Does seasonality affect flight prices?

Yes, and it's a useful thing to understand when planning your trip. Peak travel periods like school holidays, Christmas and Easter consistently push prices up, as do holidays in your intended destination. Shoulder seasons (the weeks just before or after peak periods) often offer the best value, with fewer crowds and lower fares.

Flexibility is your biggest advantage here. If your dates are fixed, booking early gives you access to cheaper seat buckets before they sell out. If your dates are flexible, comparing across a range of departure days can reveal significant savings.

Hidden airline ticket costs

The price you see first isn't always what you'll pay. Airlines are required to display the total fare for the flight itself, but it's worth knowing what's bundled in. Government taxes, airport fees and fuel surcharges are standard additions that can add up quickly, particularly on long-haul routes.

On top of that, many carriers charge separately for checked baggage, seat selection, meals and carry-on luggage above a certain size. Payment surcharges for credit cards can also catch travellers off guard. Always review the full fare breakdown before booking, and factor in any extras you know you'll need. What looks like the cheapest flight isn't always the cheapest option once you add it all up.

Is it worth searching in incognito mode?

Some travellers believe flight prices rise the more you search, as websites track your browsing and adjust fares accordingly. The evidence is mixed, but searching in private or incognito mode is a simple precaution that costs nothing.

Skyscanner searches are not linked to cookies, so your searches on the platform won't influence the prices you're shown.

How to find cheap flights

Now that you know how flights are priced, here's how to find them at their lowest.

Set up price alerts

Skyscanner's Price Alerts let you track a specific route and get notified when fares change. It's one of the easiest ways to catch a price drop without constantly checking.

Search everywhere

Not set on a destination? Skyscanner's Everywhere search shows you the cheapest flights available from your departure city across all destinations, ranked by price. It's a great way to let your budget decide where you go.

Use month view

Skyscanner's Month View displays fares across an entire month so you can spot the cheapest travel dates at a glance. Even shifting your trip by a few days can save you a considerable amount.

Mix and match airlines and airports

You don't have to book a return with the same airline. Flying out with one carrier and back with another, or departing from one airport and returning to a different one, can cut costs meaningfully. It's worth running both options to see where the savings are.

Consider less obvious destinations

Popular routes attract higher demand and higher prices. If you're open to alternatives then a different city, a nearby airport or a less-travelled destination, you'll often find better value. Some of the best trips come from following the price rather than the plan.

Looking to go deeper? We've got guides on cards and currencies, finding cheap last-minute flights and planning multi-city trips to Europe and Southeast Asia, plus a step-by-step on how to use Skyscanner's multi-city flight search.