Delta Air Lines has denied using or plotting to use AI pricing to set individual ticket prices based on what the algorithm presupposes people will pay.
Delta Pushes Back On AI Pricing Claims Amid Backlash Over Executive Comments
Delta responded to a letter from a trio of US Senators skeptical of recent comments made by Delta President Glen Hauenstein concerning the use of AI in ticketing pricing.
“Your letter presupposes that we are using, and intend to use, Al for “individualized” pricing or “surveillance” pricing, leveraging consumer-specific personal data, such as sensitive personal circumstances or prior purchasing activity to set individualized prices. To clarify, this is incorrect and this assumption, unfortunately, has created confusion and misinformation in the public discourse.
“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.”
But let’s not forget what prompted this letter. What did Hauenstein say during earnings calls in both 2024 and 2025? Just this month, he said:
“Gone are the days of rigid pricing rules and manual adjustments. Welcome to the era of true dynamic pricing, where artificial intelligence can process millions of data points instantly to set the perfect price every time. Welcome to the modern age of AI dynamic pricing.”
He added:
“This is again a full reengineering of how we price and how we will be pricing in the future.
“And if you think about it today, there are two disciplines. There is pricing, which sets the price points and then there’s revenue management, which controls access into the inventory of those price points.
“And over time, we think this is going to get melded together, that it’s going to be really just offer management. That we will have a price that’s available on that flight, on that time to you, the individual. Not a machine that’s doing an accept reject and a static price grid.”
I’d say the “you the individual” line rightfully prompted concern from Senators and put Delta on the defensive…not that it’s necessarily anti-consumer or illegal (too early to tell), but because it does represent a new chapter in the manner in which a product is marketed…and could have a transformative effect on far more than the airline industry.
So how do we square Delta’s forceful denial of using AI for individualized pricing with the words from Hauenstein?
I saw it exactly the way View From The Wing does: “When Delta says they are not doing this today, that is true. And I suppose they have no ‘intent’ to use it until the technology is there to do so and proven to work. The very fact that they aren’t there yet means they don’t intend, today, to use it.”
Delta says it is just using AI to be more competitive:
“To be clear, Delta’s ticket prices are dictated by market dynamics and vigorous competition. In fact, the Al pricing functionality recommends pricing adjustments in both directions to enhance market competitiveness and drive sales, benefiting both our customers and our business.”
That is doubtlessly true. But I find it difficult to believe the ultimate goal is not to offer individualized pricing based on specific passenger intel. Delta carefully says it does not have a fare product that it intends to use for individualized pricing, but that could change once the technology evolves to make it possible.
Think about it…why wouldn’t that be the ultimate goal if the technology can handle it? Can you fault Delta for wanting to maximize revenue?
> Read More: Delta Air Lines Faces Scrutiny Over AI-Powered Ticket Pricing
image: Delta
While it’s nice for Delta to finally admit that we can’t trust the lies that they publicly say, they’re being pretty blatant about having their fingers crossed here. We’re supposed to believe (from a company that publicly just admitted that what the CEO says is false) that they’re pouring ludicrous amounts of money into a project that will not get them more money? And where exactly is this more money going to come from then?
Airlines change prices with great frequency. I assume humans are involvedvwith that process, and AI could replace some of them, resulting in savings.
You’re completely correct. Changing prices is not the issue. An airline squeezing you for every last cent based on your prior history – using it against you – is where I have a problem.
This would be less of a problem if there hadn’t been far too much consolidation in the airline industry. That over consolidation makes it so that if you’re flying from Knoxville to Jacksonville you have a grand total of two real choices. That duopoly can use AI to squeeze you harder every time if you want or need to fly there. I’m just not good with that.
@ Matthew — Of course Delta is lying. Duh.
Another great example of peeing on customers’ legs while telling them it’s raining….. Nothing new, sadly.
Hopefully at least some customers will keep this in the back of their minds while researching fares, but I doubt there will be any positive recourse….
@ Matthew — I typically begin my research for airfare on Goggle Flights. I have often found that Google Flights can direct you to a lower price on an airline’s website than I cam obtain irectly on that same website. I wonder if “AI” is behind it?
The world gets more and more dystopian every day…