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Weird flight pricing

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Why is it that airlines always have these weird pricing scheme that make no sense? For example, the last time I checked a single ticket (instead of a return) costs the same price as a business ticket, while you can get a single ticket using air miles at a reasonable price.

Today I bought a ticket and noticed the following:

To be able to cancel the flight, you have to pay almost twice the price! A ticket you can cancel costs £1107, and you still pay £150 to cancel it. A regular ticket costs £687, so you still pay £570 if you cancel your flight on the £1107 ticket.

I'm also a bit annoyed that you now pay extra for check-in baggage on international flights, but since the last time my baggage was delayed/missing, I usually travel with hand baggage only when possible.