No, the scenario is that there are massive price differences even for the same class of seats. Traditionally, the major long haul airlines sold seats weeks/months in advance at rates that were basically losing money but made almost all of their per flight profit on last minute bookings at higher rates. These were usually business flights, but not necessarily (not usually, even) business class.
Business models for budget airlines (RyanAir, etc.) are a bit different but that's not relevant here.