Charter flights are cheaper because they work on a different system than a started airline flight. A standard airline will have a set route between two cites: an airline will fly a certain amount a times a week between two cities, and this remains constant regardless of the amount of passengers. In other words normal airline routes function like bus routes, and sometimes there may only be a few people on the plane. It is this need to average out costs - to be able to afford all those times when the plane is a third full - that leads to high airfares.
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