Overview

• Delta is piloting AI-driven pricing on about 3 percent of its domestic flights with plans to expand the model to 20 percent of routes by the end of 2025 in partnership with Fetcherr.
• Sens. Ruben Gallego, Richard Blumenthal and Mark Warner sent a letter to CEO Ed Bastian demanding an explanation of the algorithm’s data inputs, training methods and consumer protections.
• The senators cautioned that AI-based dynamic pricing could exploit personal data to raise fares to each traveler’s “pain point,” citing warnings from former FTC Chair Lina Khan.
• Delta has defended its approach as compliant with federal law, asserting that fares rely solely on trip-related factors such as purchase timing and cabin class.
• The Federal Trade Commission and consumer advocates are reviewing the legal fairness and privacy implications of individualized AI pricing.