American Airlines executives are harsh words about competitors who use artificial intelligence pricing.
“I don’t think this is appropriate,” AA CEO Robert Isom said Thursday.
The review appears to target Delta Airlines, which earlier this month used AI to price 3% of its domestic network through a partnership with tech company Fetcherr.
Delta said on July 10 that it hopes to involve AI in 20% of its domestic networks by the end of the year, while noting that AI’s use in its revenue management practices is still in the experimental stage.
It begs for a question: Do other airlines also use AI and pricing strategies?
Not American.
“I’m frankly thinking that some of the things I’ve heard aren’t good,” Isom said in a speech on the U.S. second-quarter earnings call on Thursday.
“Consumers need to know that they can trust Americans, okay? It has nothing to do with baiting and switching. It has nothing to do with deception,” Isom added. “Of course, from the Americans, this is not what we would do.”
Last fall, Delta President Glen Hauenstein compared his use of AI to a “super analyst” working around the clock on a small part of its network (and then 1%), which has increased since.
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“We love what we see. We love it so much and we will continue to launch it,” Houstein told analysts earlier this month.
But the move reviewed lawmakers this week. A group of three Democratic senators wrote by Delta CEO Ed Bastian, expressing concerns about its AI expansion and asking for more information about its pricing strategy by early August.
“A variety of market forces have driven the dynamic pricing model used in global industries for decades, and new technologies simply simplify this process,” a Delta spokesman said in a statement to TPG on Thursday.
The airline further notes that it complies with all regulations regarding pricing and disclosure and says it has never used or tested any fare products that target customers “personalized quotes based on personal information or otherwise”.
How American Airlines Use Artificial Intelligence
American yes However, using AI, ISOM pointed out on Thursday – just not by price. He explained that the Fort Worth-based airline focused its use of technology on operational features, including plans to return to operations after bad weather and other damage.
“For our customers, this will improve their customer experience,” Isom said. “We will be able to serve them and when they do have difficulties, they can recover faster.”
Southwest Airlines noted Thursday that it has been using machine learning to predict the number of luggage it has to check. Alaska Airlines said it is using AI for security and operational planning.
“We are looking for initiatives that really make guests experience all this at the heart,” Alaska Airlines Group CEO Ben Minicucci said on Thursday’s financial conference call for airlines in Seattle.
Bottom line
In terms of its value, airlines (in general) have long relied on a combination of factor-driven algorithms such as supply and demand and human analysts to set fares. Plus, dynamic pricing has been around for years, which could be a factor in how customers might one day find a $250 fare, only a few hours later to see it spike… or drop.
To be fair, Americans are not subject to their own clever pricing strategies that arouse the anger of consumer advocates. It is the operator found to charge solo travelers, not the customer who travels with one or more companions.
In recent years, U.S. airlines released financial metrics on Thursday, the U.S. has also lagged firmly behind profitability, including key in the second quarter of 2025.
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