Delta Air Lines Deploys AI to Gauge Passenger Price Limits

Delta Air Lines is ramping up its use of dynamic ticket pricing powered by artificial intelligence, which determines the maximum fare each customer is likely willing to pay. During the company’s latest earnings call, as noted by Fortune, executives revealed that after a limited trial last year, Delta plans to fully shift away from fixed ticket prices—citing “amazingly favorable” outcomes.

“We will offer a price specific to that flight, at that time, uniquely for you as an individual,” Delta President Glen Hauenstein told investors in November, referencing an earlier test on 1 percent of ticket prices. According to last week’s earnings call, Delta already applies AI pricing to 3 percent of its fares and aims to increase that figure to 20 percent by year-end. “We're currently in an intensive testing phase,” Hauenstein stated. “We're very encouraged by the results and we’re moving forward with broader implementation.”

Although personalized pricing isn’t exclusive to Delta, the airline has been unusually open about its adoption. Hauenstein described the AI ticketing system during the November call as “a complete overhaul of our pricing strategy, both today and for the future,” and referred to the transition as “a multiyear, multi-stage initiative.” He acknowledged that early test revenue figures were promising, but warned that an improperly managed shift to AI-driven fares “could pose significant risks.”

Delta’s personalized AI pricing technology is supplied by travel firm Fetcherr, which also collaborates with Virgin Atlantic, Azul, WestJet, and Viva Aerobus. In Delta’s implementation, the AI functions as a “super analyst” that operates around the clock, determining customized fares for individual customers in real time, aligned with specific flights and departure times.

Airlines have long varied ticket prices for the same routes, influenced by factors such as booking lead time, the platform used, and even the customer’s web browser. Delta is no different, but AI-powered pricing is poised to take this practice to the next level.

Delta has faced criticism for charging different prices to different customers. In May, the airline reversed a policy that increased fares for solo travelers relative to groups. While the full extent of data analysis in Delta’s AI ticketing remains unclear, Fortune reports that privacy advocates are raising concerns.

“They’re essentially attempting to read people’s minds to gauge how much they’re willing to spend,” Justin Kloczko from Consumer Watchdog told the publication. “It’s like they’re hacking our thought process.” Arizona Senator Ruben Gallego called it “predatory pricing” intended to “squeeze every last penny out of passengers.”