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Delta Expands AI-Based Fares to 20% of U.S. Flights as Lawmakers Demand Transparency

The airline says it won’t use personal data for fare offers despite calls for detailed disclosures by regulators, legislators

A Delta Air Lines Boeing 737-800 plane sits at the gate at LAX airport in Los Angeles, California, U.S., April 1, 2018. REUTERS/Lucy Nicholson/File Photo
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Overview

  • Delta will scale AI-driven dynamic pricing from 3% to 20% of its U.S. domestic flights by the end of the year.
  • Delta insists the system won’t target customers using personal data even though its provider once promoted “hyper-personalization.”
  • The Federal Trade Commission has opened a review of the algorithm to assess potential privacy and fairness risks.
  • Senators Ruben Gallego, Richard Blumenthal and Mark Warner sent a letter urging full disclosure of the model’s data inputs and consumer safeguards.
  • Experts and consumer advocates warn that AI pricing could make ticket costs less predictable and push overall fares higher.