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Delta Tells Senators It Won’t Personalize Fares While Scaling AI Pricing to 20% of Flights

Lawmakers are demanding details on algorithm inputs after the carrier said its AI model relies solely on market data.

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

  • In a letter to Senators Ruben Gallego, Mark Warner and Richard Blumenthal, Delta asserted it has never used and will not use AI to target individual customers with personalized fares based on personal data.
  • Delta plans to expand its AI-assisted revenue management from roughly 3% to 20% of U.S. domestic routes by the end of 2025 through its partnership with tech provider Fetcherr.
  • Consumer advocates warn that opaque pricing algorithms could infer sensitive customer information and lead to unfair fare disparities for vulnerable travelers.
  • American Airlines CEO Robert Isom has publicly rejected similar AI-based pricing methods, saying his airline will not employ individualized AI pricing to maintain consumer trust.
  • Fetcherr’s earlier website claim of “hyper-personalization” of fares has drawn scrutiny under emerging regulatory proposals and FTC guidelines on discriminatory pricing practices.