Unlocking Savings: Discover the New Features of Delta’s Innovative AI Pricing Plan

Delta Air Lines is shedding light on its new AI-powered pricing system. Recently, the airline faced scrutiny after comments made about how it sets ticket prices.

In a November meeting, Delta’s president, Glen Hauenstein, claimed that the airline aims to provide customized pricing for passengers. However, in response to questions from lawmakers, Peter Carter, Delta’s EVP and Chief External Affairs Officer, clarified in a letter that no pricing model targets individuals based on personal data. He emphasized that Delta has “zero tolerance” for any form of discriminatory pricing.

As part of its earnings report, Hauenstein revealed plans to implement this AI technology across about 20% of Delta’s domestic routes by the year’s end. The tech, developed by Fetcherr, is designed to improve current pricing methods. Carter described it as a support tool that offers insights for analysts, who will ensure the prices align with the airline’s strategy.

Hauenstein previously likened the AI to a “super analyst,” continuously evaluating market changes to adjust pricing. Instead of focusing on individual customers, this technology aims to optimize for the overall market, responding to competitors and buying trends.

Carter mentioned that Delta is still reviewing the AI pricing tool and reassured that personal data is not shared with Fetcherr. This scrutiny comes in light of recent calls for stricter regulations on AI pricing. Senators Ruben Gallego, Mark Warner, and Richard Blumenthal raised concerns about such technologies in a July letter to Delta’s CEO. In addition, Representatives Greg Casar and Rashida Tlaib proposed the Stop AI Price Gouging and Wage Fixing Act, which seeks to prevent companies from using AI for pricing based on personal data.

The discussion around AI in pricing is significant. Research shows that 61% of consumers are worried about how their data is used in AI-driven systems. These concerns are on the rise as industries increasingly rely on AI for decision-making.

Overall, Delta’s move towards AI pricing reflects a broader trend in the airline industry, where technology plays a major role in strategy and customer interaction. The conversation about ethical AI use will likely continue, urging companies to maintain transparency and fairness in their pricing practices.



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