Delta Airlines defends the use of AI in air ticket pricing strategies

Delta Airlines launched this week to lawmakers, defending the use of artificial intelligence in priced air tickets.

In letters from three legislators reviewed by TPG, the Atlanta-based carrier once again insists that it will not utilize customer data or target individual consumers as part of a new AI-assisted pricing plan.

The particularly controversial concerns in the Delta were raised by three Democratic senators who accused airlines of “personalization” and “surveillance” pricing last month.

“This is incorrect, and unfortunately, this assumption has caused confusion and misinformation in public discourse,” Dels Chief External Affairs Officer Peter Clark wrote in a letter on Thursday. “In addition, we have zero tolerance for discriminatory or predatory pricing and fully comply with applicable laws on privacy, pricing and advertising.”

Delta first revealed that last fall, it was used in a small portion of domestic bookings, likening technology to a “super analyst” to help its human income management workers.

Delta Air Lines president Glen Hauenstein said that by last month the airline had incorporated AI into about 3% of domestic routes through a partnership with tech company Fetcherr, noting that the airline hopes to increase its AI usage to about 20% routes by the end of 2025.

This revelation is reviewed from Capitol Hill to top competitors’ C-suites.

Senators Mark Warner (D-Virginia), Ruben Gallego (D-Arizona) and Richard Blumenthal (D-Connecticut) wrote a letter to the airline last month asking for a clearer AI pricing strategy for the company.

Then, last week, American Airlines CEO Robert Isom said Delta’s use of AI was “inappropriate” and argued that the U.S. did not intend to use AI in its fare pricing practices.

In response this week, Delta said its new AI plan is simply a “decision support tool” that predicts demand and recommends fares based on many of the same business considerations for decades, from booking models to route competition and fuel prices.

In some cases, Delta’s AI tools recommend cheaper fares – presumably when the seats are not sold.

Delta notes that it also integrates AI into other parts of its business, including in customer service and predicting when aircraft or aircraft parts may require maintenance.

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