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Delta Targets 20% AI-Priced Fares as Regulators Scrutinize Dynamic Model

Delta insists its dynamic fares comply with federal law under safeguards disclosed in public filings during an FTC review of its partnership with Fetcherr

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Overview

  • Delta is currently pricing about 3 percent of tickets with AI and aims to have 20 percent individually determined by year-end 2025 through a partnership with Fetcherr
  • Executives describe the initiative as a full reengineering of pricing in a multiyear rollout intended to optimize revenue through individualized, real-time fare adjustments
  • The airline says its fares are publicly filed and based on trip-related factors such as advance purchase and cabin class with strict legal safeguards to prevent discrimination
  • Senator Ruben Gallego has condemned the plan as predatory pricing and vowed to block its rollout
  • The Federal Trade Commission is studying whether individualized pricing could violate the FTC Act or harm consumers and privacy advocates warn that opaque algorithms risk eroding customer trust