Delta Airlines has clarified that it does not utilize artificial intelligence for flight pricing, responding to recent scrutiny from congressional lawmakers. In a letter addressed to Senators Ruben Gallego, Mark Warner, and Richard Blumenthal, Delta emphasized that its ticket prices are determined by market dynamics and competition rather than on individual customer data.
The airline reiterated, “There is no fare product Delta has ever used, is testing or plans to use that targets customers with individualized prices based on personal data.” Delta’s statement aims to alleviate concerns that AI technology could lead to personalized fare increases based on passenger information.
However, Delta acknowledged that it is exploring AI solutions, specifically a partnership with Fetcherr, an AI pricing company. This technology is intended to support analysts by streamlining pricing processes and improving response times to market changes, not to set individual prices. The airline is currently testing the system in a pilot program designed to forecast demand and adapt to fluctuating market conditions.
The discussion surrounding AI in airline pricing intensified after Delta’s President, Glen Hauenstein, suggested that their AI capabilities could involve predicting how much passengers might pay for premium services related to baseline fares. This commentary prompted concerns from lawmakers, who feared potential fare increases for consumers.
In a related remark, American Airlines CEO Robert Isom expressed skepticism about using AI for pricing strategies that could undermine customer trust, emphasizing a commitment to transparency.
Delta’s exploration of AI extends beyond pricing, as the airline seeks to improve various operational aspects, including customer service responses and crew scheduling efficiency.
This proactive approach to integrating technology into operations showcases Delta’s commitment to enhancing their service quality while navigating the complex dynamics of the aviation market. By focusing on fair pricing through market competition, Delta aims to maintain consumer trust and satisfaction.