Delta Air Lines has publicly clarified that it does not utilize artificial intelligence (AI) for setting flight prices, following scrutiny from members of Congress. In a letter addressed to Senators Ruben Gallego, Mark Warner, and Richard Blumenthal, Delta emphasized that its pricing is determined by market dynamics and competitive forces, rather than individualized customer data. The airline asserted that no fare product currently in use or under development targets customers with personalized pricing based on their personal information.
While Delta maintains that it does not use AI for pricing, it is exploring AI-based revenue management technologies developed by Fetcherr. This evaluation aims to streamline manual processes, enhance analytical efficiency, and facilitate quicker pricing adjustments. The airline noted that it is testing a pilot program with Fetcherr to forecast demand for specific routes, allowing for better adaptation to changing market conditions.
This response from Delta comes after concerns were raised regarding the potential for AI to set prices based on customer willingness to pay, as mentioned by Delta President Glen Hauenstein in December. Such practices could lead to fare increases, according to the senators. In light of these developments, American Airlines CEO Robert Isom remarked on a recent earnings call that employing AI for ticket pricing could undermine consumer trust, asserting that it is not a strategy American Airlines would adopt.
Delta's letter indicates its commitment to transparency in pricing practices while acknowledging a broader interest in integrating AI technology to enhance customer service and operational efficiency. The airline aims to clarify its position amid ongoing discussions about the implications of AI in the airline industry.