How should I price a route?

Start at the recommended fare. It is not a target, it is the number the market is used to paying for that distance, and demand falls away as you move above it and rises as you drop below.

Undercutting wins both local passengers and connecting ones — a discount is how a hub carrier pulls traffic off somebody else's nonstop. Overpricing loses both.

If you are flying at 100% load, you are priced too low. If you are under 60%, the problem is usually seats rather than price.