Delta Air Denies Using AI to Personalize Fares, Despite Plans to Deploy AI-Based Revenue Management Technology

Delta Air Lines has assured US lawmakers that it will not use artificial intelligence (AI) to set personalized ticket prices for passengers. The airline plans to deploy AI-based revenue management technology across 20% of its domestic network by 2025, but it will not use AI to set individual prices based on personal data. Delta's ticket pricing is based on factors like overall demand, fuel prices, and competition.

Delta Air Lines has reassured US lawmakers that it will not use artificial intelligence (AI) to set personalized ticket prices for passengers. The airline has been under scrutiny for its plans to deploy AI-based revenue management technology across 20% of its domestic network by 2025, but it has clarified that this technology will not be used to set individual prices based on personal data.

In a letter to Democratic Senators Ruben Gallego, Mark Warner, and Richard Blumenthal, Delta's chief external affairs officer, Peter Carter, stated that "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" [2]. The airline has emphasized that its ticket pricing strategy is based on factors such as overall demand, fuel prices, and competition, rather than individual consumer information.

Delta's President, Glen Hauenstein, has previously commented on the AI technology's capability to predict the amount people are willing to pay for premium products related to base fares. However, the airline maintains that this technology is a decision-support tool for analysts, who oversee and fine-tune recommendations to align with business strategy [1].

American Airlines CEO Robert Isom has also weighed in on the issue, stating that using AI to set ticket prices could harm consumer trust. "This is not about bait and switch. This is not about tricking," Isom said, adding that such use of AI is not appropriate and not something American Airlines would do [2].

Despite Delta's assurances, senators continue to express concerns and seek more details about the data Delta is collecting to set prices. Senator Gallego noted, "Delta is telling their investors one thing, and then turning around and telling the public another" [2]. The ongoing dialogue between lawmakers, airlines, and regulatory bodies like the FTC suggests that the use of AI in pricing strategies will remain a topic of scrutiny and debate in the coming years.

References:
[1] https://dig.watch/updates/delta-air-lines-rolls-out-ai-for-personalised-airfare
[2] https://theoutpost.ai/news-story/delta-air-lines-refutes-claims-of-ai-driven-personalized-pricing-amid-scrutiny-18576/