UnpressAI

02 Aug 2025, 02:49

Delta clarifies how its dynamic pricing model works using artificial intelligence

  • Delta utilizes AI for data analysis and price determination.
  • The company does not practice personalized pricing based on individual data.
  • Critics and legislative inquiries point to the need for transparency.

This is reported by Ars Technica, The Verge.

Delta Air Lines is trying to clarify its pricing model using artificial intelligence following criticism from lawmakers and the public. In July 2025, Delta faced negative reactions to its comments regarding its pricing policy, which is based on AI.

Delta's President, Glen Hauenstein, during a revenue call confirmed that the company uses AI for pricing on 3% of internal flights and plans to expand this to 20% by the end of the year. Meanwhile, Delta asserts that it does not use personalized pricing based on individual customer data.

In response to lawmakers' inquiries, Delta's Vice President, Peter Carter, clarified that the company maintains a "zero tolerance" for discriminatory pricing. He indicated that AI helps analyze data on demand in locations, competitor proposals, and spending on services. Delta also emphasized that it does not require customers to log into the system to search for tickets, which allows for preserving their confidentiality.

Critics assert that the company should be more transparent regarding its pricing strategies, as this could infringe on consumer rights. Delta plans to continue using AI to enhance competitive advantage, but insists that prices will not be adjusted based on specific consumers.

Tags: Technology/AI/Aviation

Articles on this topic:

  • www.theverge.com - Delta’s dynamic AI pricing plan sounds different now
  • arstechnica.com - Delta denies using AI to come up with inflated, personalized prices