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Delta Air Lines Denies Using AI for Ticket Pricing

Delta Air Lines Denies Use of AI in Ticket Pricing Amid Regulatory Concerns
Delta Air Lines has categorically denied employing artificial intelligence to determine ticket prices, responding to inquiries from three U.S. senators regarding the potential use of AI-driven personalized pricing. In a letter released on Thursday, the Atlanta-based carrier clarified that it does not utilize AI to inform its dynamic pricing model or to set individualized fares based on personal customer data.
Response to Senatorial Inquiry
The airline’s statement followed questions from Senators Ruben Gallego, Richard Blumenthal, and Mark Warner, who expressed concern that Delta might be using AI to adjust prices for individual consumers, potentially increasing fares to match each customer’s personal “pain point.” Delta assured lawmakers that it has never used, tested, nor planned to implement any fare product that targets customers with individualized prices derived from personal information. The company emphasized that its pricing strategy is driven by market dynamics and competition rather than AI-enabled surveillance or discriminatory practices.
Delta stated, “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.” The airline further explained that while AI tools are employed, their role is limited to supporting analysts by aggregating data and providing insights. Final pricing decisions remain under human oversight to ensure alignment with the company’s broader business strategy.
Clarification on AI Usage and Pricing Practices
The airline highlighted that its AI technology functions as a decision-support tool, offering informed recommendations that analysts review and adjust accordingly. Delta underscored its strict policy against discriminatory or predatory pricing, noting that fares are publicly filed multiple times daily through the Airline Tariff Publishing Company (ATPCO). Ticket prices are determined by objective factors such as origin and destination, advance purchase requirements, length of stay, refundability, and the travel experience selected. Importantly, all customers have equal access to the same fares and offers without the need to sign in to Delta’s website or app.
Delta detailed that its AI applications focus on aggregating purchasing data for specific routes and flights, forecasting demand, adapting to evolving market conditions, and simultaneously considering thousands of variables. These capabilities are intended to enhance market competitiveness and optimize sales, benefiting both customers and the airline.
Industry Context and Commitment to Fair Pricing
Delta’s clarification arrives amid heightened scrutiny of AI’s role in dynamic pricing across the airline industry. The company’s assurances seek to address public and regulatory concerns about potential unfair pricing practices. Other major carriers, including American Airlines, have also expressed reservations about the use of AI for individualized fare setting.
Reiterating its commitment to customer experience and fair competition, Delta affirmed to the senators that its ticket prices are dictated by market forces and robust competition. The airline emphasized that its AI pricing functionality recommends adjustments in both directions to maintain competitiveness and support business objectives, ultimately serving the interests of its customers.

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