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Old Sep 19, 17, 4:09 am
Join Date: Jul 2012
Programs: BA Gold (OWE), SAS Diamond (*G)
Posts: 584
There was a nice discussion of airline pricing (especially as applied to LCCs; one of the guests is from EasyJet) in this episode of the BBC Radio 4 show The Bottom Line:

As I recall, the EasyJet representative said they used a number of factors, including competitors prices, how well sold the aircraft is at various dates before departure, how the flight performed on the same day last year, and events and special circumstances at the O&D airports.

I also wouldn't be surprised if these days some airlines use machine learning to help set prices, trained on historical results.
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