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yesterday

U.S. Moves to Investigate AI-Driven Airline Fares as Delta Denies Using Personal Data

Regulators have pledged probes into personalized AI fares alongside congressional efforts to outlaw individualized pricing.

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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

  • Transportation Secretary Sean Duffy said the department will investigate any airline that uses AI to set personalized ticket prices.
  • Delta continues testing AI-driven dynamic pricing on 3% of its domestic routes, plans to expand to 20% by year-end, and insists it does not use personal consumer data.
  • Fetcherr maintains its AI model relies exclusively on aggregated market variables and does not collect or process any personally identifiable information.
  • Senators Ruben Gallego, Mark Warner and Richard Blumenthal have demanded detailed disclosures of AI pricing models, and lawmakers Greg Casar and Rashida Tlaib have proposed legislation to prohibit individualized AI-driven pricing and wage setting.
  • American Airlines CEO Robert Isom warned that using AI to set ticket prices could erode consumer trust and said his airline will not adopt the practice.