Originally Posted by fastair

98% certain the circuitous routing isn't part of the SFO-OTH fare, but rather a cheaper (i.e supply and demand/competition drives much pricing...and there may be more demand for SFO-OTH nonstop, or more competitive pressure out of LAX) LAX-OTH fare with a SFO-LAX fare added to it. It is called in airline terms a "sum of the locals" fare, where you are paying the sum of 2 local fares instead of a single fare, which happens to be higher.

How many businesses do you know that price based on cost, not on what the market will support?