Three senators recently wrote to Delta Air Lines’ CEO Ed Bastian regarding the airline’s intended use of artificial intelligence to set ticket prices, questioning how this approach could affect travelers.

“Individualized pricing, or surveillance-based price setting, eliminates a fixed or static price in favor of prices that are tailored to an individual consumer’s willingness to pay. Delta’s current and planned individualized pricing practices not only present data privacy concerns, but will also likely mean fare price increases up to each individual consumer’s personal ‘pain point’ at a time when American families are already struggling with rising costs,” the letter stated.

According to PhocusWire, Delta plans to deploy Fetcherr, a revenue management technology company, across 20 percent of its domestic network by the end of this year. Currently, the airport uses this AI pricing technology for about 3 percent of its domestic network, up from 1 percent in November 2024.

How could this technology impact travelers?

“The implications for individual consumer privacy are severe on their own,” the letter noted. “Surveillance pricing has been shown to utilize extensive personal information obtained through a variety of third-party channels, including data about a passenger’s purchase history, web browsing behavior, geolocation, social media activity, biometric data, and financial status.”

Delta Air Lines responded to the letter and other speculation around its AI pricing.

According to Delta, “There is no fare product Delta has ever used, is testing or plans to use that targets customers with individualized prices based on personal data. Furthermore, we have zero tolerance for discriminatory or predatory pricing and fully comply with applicable laws in privacy, pricing and advertising. Our AI powered pricing functionality is designed to enhance our existing fare pricing processes using aggregated data.”

Additionally, the airline emphasized customers are not required to sign in on delta.com or the app to shop and compare prices. Delta is also currently evaluating AI to enhance and improve crew scheduling, tech ops planners and reservations specialists.

Furthermore, the airline’s AI tool created by Fetcherr is used to:

• Aggregate purchasing data for specific routes and flights
• Forecast demand for specific routes and flights
• Adapt to new market conditions
• Factor in thousands of variables simultaneously

What are your thoughts on airlines using AI for ticket pricing? What are your thoughts on airlines using AI for other aspects of its business? Email us at letters@globaltravelerusa.com. Please include your full name and location.