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Seems the same as a hotel - empty rooms benefit no one.
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I don't know about theatres, but I do know about hotel rooms.

If you lower the price too much, you get a different sort of clientele. The sort of person who wrecks the place and annoys all the other patrons nearby.

Then the cleanup costs a lot. Often more than the amount of revenue collected on the room.

It absolutely makes more sense to keep the hotel room empty than to lower the price to keep it fully occupied.

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I guess it depends on who gets paid for the movie being shown, and who gets paid when a ticket is sold.

If it is free to show the movie then there is no penalty to running extra sessions. If it isn't free, someone is being paid. If that is a different someone to where ticket money goes they care more about sessions than viewings.

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