Here is probably a pretty realistic article from USA Today about the future of airline travel, an industry that just can't seem to figure out how to really run their business successfully. 
My advice has always been to book as early as you can, for whatever price you pay, and then forget about it.  You have little control, and you can't predict anything in regard to this form of travel.

Click http://www.usatoday.com/travel/flights/2008-04-30-jet-fuel-high-fares_N.htm