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20h ago

Transportation Secretary to Probe AI-Driven Airline Fares as Delta Ramps Up Trials

Secretary Duffy is demanding transparency following Delta’s disclosure that its generative AI now prices 3 percent of domestic fares.

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U.S. Transportation Secretary Sean Duffy speaks to the media outside the White House in Washington, D.C., U.S., May 6, 2025. REUTERS/Kent Nishimura/File Photo
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Overview

  • Delta is currently using AI to set 3 percent of domestic fares and aims to expand coverage to 20 percent by year-end under an 18–24-month trial.
  • Delta and Fetcherr say their models rely solely on aggregated market data such as seat availability, weather, current news, events and oil prices and do not use or collect personal consumer information.
  • Transport Secretary Sean Duffy warned he will investigate any airline that uses AI to individualize prices based on customer-specific data.
  • Research from Fast Company reveals Fetcherr’s AI incorporates variables like flight schedules, demand trends and macroeconomic indicators to fine-tune pricing algorithms.
  • Fetcherr has partnerships with carriers including Virgin Atlantic, Viva Aerobus, West Jet and Royal Air Maroc, reflecting a broader industry shift toward AI-driven revenue management and prompting calls for regulatory safeguards.