Now, a new and more contentious issue involving Delta has emerged—one that merges the airline industry’s pricing strategies with artificial intelligence (AI), raising alarm among lawmakers and regulators.
The debate centers on the possibility of airlines using AI to determine “personalized” ticket prices based on individual passenger data.
Such a system could adjust fares in real time during searches and bookings, potentially charging some customers more—particularly those perceived as wealthier or in urgent need of travel—while offering lower rates to others. Factors influencing AI-driven pricing could include a traveler’s zip code, age group, occupation, or even recent online searches suggesting urgency, such as looking up obituaries.
Critics argue this approach essentially monetizes personal information to maximize airline profits, while raising questions about fairness, transparency, and privacy. U.S. Transportation Secretary Sean Duffy voiced concerns on August 5, stating that any attempt to individualize airfare based on personal attributes would prompt immediate investigation. He emphasized that pricing seats according to income or personal identity is unacceptable.
Delta Air Lines has assured lawmakers that it has never used, tested, or planned to use personal data to set individual ticket prices. The airline acknowledged its long-standing use of dynamic pricing, which adjusts fares based on competition, fuel costs, and demand, but stressed that personal information has never been part of the equation. While Duffy accepted Delta’s statement “at face value,” several Democratic senators, including Richard Blumenthal, Mark Warner, and Ruben Gallego, remain skeptical and are pressing for legislative safeguards.
This skepticism is partly fueled by past comments from Delta President Glen Hauenstein, who in December suggested that AI could help predict how much passengers are willing to pay for premium services. Although Delta has promised not to implement AI-based personal pricing, the senators want clarity on the nature of the data being collected for fare determination.
In response to these concerns, Democratic lawmakers Rashida Tlaib and Greg Casar have introduced a bill aimed at prohibiting companies from using AI to set prices or wages based on personal information. This would include preventing airlines from raising fares after detecting sensitive online activity.
Delta’s partnership with AI pricing firm Fetcherr—whose clients include several major global airlines—has also drawn attention. While some carriers view AI pricing as a profit-boosting tool, others, like American Airlines CEO Robert Isom, have rejected the practice, citing potential damage to consumer trust.
For now, AI-driven personal pricing in air travel remains a possibility rather than a reality in the U.S. Whether it will be implemented—or banned outright—depends on the outcome of ongoing political and public scrutiny. Regardless, the debate underscores a growing tension between technological innovation and consumer protection in the airline industry.
