Why would Continental charge $660 to fly to Cleveland from Newark, and only $198 from nearby LaGuardia airport. It's only a 60 min flight from either Newark or LaGuardia, though Newark is a Continental hub.
by 
sebastianfont
ANSWERS: 4
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Airline pricing is a complex, unpredictable beast driven by three ugly words: competition, demand, and inventory. Airlines call it "yield management," but we doubt if even airline CEOs fully understand it. How could they? How can any rational person explain why a one-way flight is just as expensive as a round-trip ticket? For more information, pick from this list of sources: http://www.google.com/search?hl=en&q=how+airlines+set+their+prices&btnG=Search
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Basically because they can. And the $660 may represent the price on Travelocity but perhaps not on Continentals's website or on airfare.com or cheapflights.com
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Sometimes this happens because Continental is trying to match the fare of another airlines flying out of LaGuardia, possibly AirTrans or Delta, maybe. They have more clout at Newark because they control 60% of the traffic there. A few times, I flew Continental out of Philadelphia because the fares were low after Southwest began operations there.
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Because Cleveland and Newark are two of Continental's major hubs and the have pretty much got a lock on that market. They can (and do) charge what they think they can get away with. Trust me on this.
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