From fuel costs to holiday rushes, many factors play into the fluctuating cost of air travel. Now, Delta Air Lines is adding AI to the mix—but not without sparking concern.
Delta recently faced a wave of criticism from lawmakers who feared the airline might start using AI to tailor prices to individuals based on personal data. Senators Ruben Gallego, Mark Warner and Richard Blumenthal warned of a future where passengers are charged based on their "pain point"—a.k.a. the maximum they’re willing to pay—echoing the surge pricing model of Uber and Lyft.
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Delta responded swiftly. In a letter to the senators, the airline stated plainly: It has never used personal data to set individualized prices, nor does it plan to. "Our ticket pricing never takes into account personal data," the company wrote. Instead, Delta says its AI rollout is about speed—helping adjust to shifting market conditions faster and smarter, not pricing passengers based on who they are.
The technology comes from Fetcherr, an Israeli startup specializing in AI-based pricing management. Delta aims to have it running across 20-percent of its domestic network by the end of 2025. Fetcherr promises airlines can "personalize offers" and "maximize profitability," language that raised more than a few red flags in Washington.
Lawmakers aren’t fully convinced. "Delta is telling their investors one thing, and then turning around and telling the public another," said Senator Gallego in a public statement. He and others want clarity on what kind of data Delta is actually using.
Delta insists that the AI helps manage traditional variables like demand, competition and route popularity—nothing new in the airline world. "AI promises to streamline the process," not manipulate it, the company assured.
Meanwhile, rivals are also weighing in. Per FOX Business, American Airlines CEO Robert Isom warned that using AI to push personal pricing "could hurt consumer trust."
The debate is only heating up. A new bill introduced by Democratic lawmakers Greg Casar and Rashida Tlaib seeks to ban AI-driven pricing based on personal data altogether, citing FTC concerns about increasingly tailored—and potentially exploitative—pricing models.
As AI reshapes how airlines manage revenue, the line between efficiency and exploitation is under the microscope. For now, Delta is walking it carefully.