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Delta Air Lines clarified on Wednesday that it does not use artificial intelligence for individualized pricing based on customers’ personal data, responding to inquiries from three U.S. senators concerned about the airline’s pricing practices.
In a letter to Senators Ruben Gallego, Richard Blumenthal, and Mark Warner, Delta’s Executive Vice President and Chief External Affairs Officer Peter Carter firmly rejected the notion that the carrier employs AI for what critics call “surveillance pricing.”
“There is no fare product Delta has ever used, is testing or plans to use that targets customers with individualized prices based on personal data,” Carter wrote, addressing concerns raised in the senators’ July 21 inquiry. “We have zero tolerance for discriminatory or predatory pricing and fully comply with applicable laws in privacy, pricing and advertising.”
The controversy stems from Delta’s pilot program with AI technology developer Fetcherr, which has sparked speculation about how airlines might use advanced algorithms to set airfares. Carter emphasized that the airline’s AI-powered pricing functionality merely enhances existing fare pricing processes using aggregated data, not individual customer information.
The clarification comes amid growing scrutiny of the airline industry’s pricing practices. Airlines have long used dynamic pricing models to adjust fares based on numerous factors, including demand, competition, and operational costs. However, the introduction of AI has raised questions about transparency and fairness.
Carter explained that Delta’s ticket prices are primarily influenced by market dynamics and competition. The airline publicly files its fares through the Airline Tariff Publishing Company (ATPCO) multiple times daily, making them available to all customers based on objective criteria such as origin and destination, advance purchase timing, length of stay, and refundability.
“Customers are not required to sign in on delta.com or the app to shop and compare prices,” Carter noted, adding that consumers can view and compare fares without providing any personal information to the airline.
Delta described its partnership with Fetcherr as a test of AI-powered recommendation tools that assist analysts by reducing manual processes and improving response time to market changes. The technology helps aggregate purchasing data for specific routes and flights, forecast demand, adapt to new market conditions, and simultaneously analyze thousands of variables.
Beyond pricing, Delta is evaluating AI applications across its operations. Reservation specialists now use AI-integrated knowledge management tools to answer complex customer questions more efficiently. The airline’s technical operations planners employ AI to better predict maintenance needs and improve aircraft availability, while crew scheduling teams use it to anticipate where crew replacements may be required.
The airline industry has been at the forefront of algorithmic pricing for decades. Since the deregulation era of the 1980s, carriers have developed increasingly sophisticated yield management systems to maximize revenue by adjusting prices based on demand forecasts and seat inventory.
Industry analysts note that the adoption of AI represents an evolution rather than a revolution in airline pricing strategies. However, the technology’s increased power and reach have intensified concerns about potential misuse.
Consumer advocacy groups have voiced apprehension about the opacity of AI-driven pricing systems, arguing that advanced algorithms could potentially identify and exploit certain customer segments in ways that might not be immediately apparent to regulators or the public.
Delta’s response comes as lawmakers and regulatory agencies show increasing interest in how AI is being deployed across various sectors of the economy. The airline emphasized that it has implemented a comprehensive AI governance framework that balances operational enhancements with high standards for safety, security, and customer trust.
The airline directed concerned customers to its privacy policy and AI terms of use, which detail how the company handles personal information and discloses when customers are interacting with AI systems.
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17 Comments
Glad to see Delta taking a strong stance against discriminatory pricing. Compliance with laws and ethical use of AI should be top priorities for airlines.
Good to see Delta taking a firm stance against predatory pricing. Transparency and accountability should be top priorities as airlines leverage new technologies.
Agreed. It’s a delicate balance, but airlines need to ensure their use of AI aligns with consumer protection laws and ethical principles.
The senators are right to scrutinize this issue closely. Pricing algorithms can easily lead to unfair or discriminatory practices if not implemented responsibly.
Absolutely. Vigilance and strong oversight will be crucial as AI becomes more widely adopted in sensitive areas like airfare pricing.
Delta’s response provides some reassurance, but I still have questions about how their AI-powered pricing works in practice. More clarity on the specifics would be helpful.
Good point. The details around how the technology is applied and what safeguards are in place will be important for building consumer trust.
This is a complex issue without easy answers. I appreciate Delta’s efforts to address the concerns, but more information on their practices would be helpful.
Interesting development in the airline industry’s use of AI for pricing. I’m glad to see Delta addressing concerns proactively and committing to compliance.
Curious to learn more about Delta’s specific use of AI in pricing. The commitment to compliance is reassuring, but the details will be important.
Thoughtful response from Delta. As AI becomes more prevalent in various industries, maintaining consumer trust through responsible practices will be crucial.
Well said. Proactive communication and a commitment to transparency can go a long way in building that trust.
This is a complex issue as airlines try to optimize pricing using data and algorithms. I appreciate Delta’s commitment to complying with privacy and pricing laws.
Absolutely, finding the right balance between efficiency and fairness is key. Customers deserve to know how their data is being used.
Glad to see Delta addressing misinformation around their pricing practices. Transparency and compliance with laws are crucial as airlines adopt new AI tools.
You’re right, it’s important for airlines to be upfront about how they use AI and customer data. Predatory pricing would be a major concern.
It’s encouraging to see Delta take a strong stance against discriminatory or predatory pricing practices. Transparency and accountability are important as AI becomes more prevalent.