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Showing posts with label airline cybersecurity. Show all posts

US Lawmakers Raise Concerns Over AI Airline Ticket Pricing Practices

 

Airline controversies often make headlines, and recent weeks have seen no shortage of them. Southwest Airlines faced passenger backlash after a leaked survey hinted at possible changes to its Rapid Rewards program. Delta Air Lines also reduced its Canadian routes in July amid a travel boycott, prompting mixed reactions from U.S. states dependent on Canadian tourism. 

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.

Qantas Confirms Massive Cyberattack Exposing Data of Over 5.7 Million Customers

 

Australia’s Qantas Airways announced on Wednesday, July 9, 2025, that a large-scale cyberattack has compromised the personal data of millions of its customers, marking one of the nation’s most severe security breaches in recent memory.

According to the airline, over one million customers had highly sensitive details accessed, including phone numbers, dates of birth, and residential addresses. Additionally, the breach impacted another four million customers whose names and email addresses were taken during the intrusion.

Qantas initially reported the incident last week but has now provided further clarity on the scale of the compromise. After carefully removing duplicate records from the initial estimate of six million, the company determined that the database contained unique personal information belonging to approximately 5.7 million individuals.

Despite the scope of the attack, Qantas said there is currently no evidence suggesting that any of the stolen data has been published or misused. The company emphasized that it has been actively monitoring the situation to detect any suspicious activity or unauthorized attempts to disseminate the compromised information.

In response to the breach, the airline has significantly strengthened its cyber security protocols to protect customer data from further exposure. “Since the incident, we have put in place a number of additional cyber security measures to further protect our customers’ data, and are continuing to review what happened,” Qantas Group CEO Vanessa Hudson said in a statement.

The hack has renewed concerns about the resilience of Australia’s critical infrastructure and large corporate networks, coming just a few years after the country grappled with major cyberattacks on telecommunications provider Optus and health insurer Medibank in 2022. Those incidents prompted the government to implement mandatory cyber resilience laws and stricter reporting requirements for serious breaches.

Cybersecurity analysts have warned that companies holding large volumes of consumer data have become prime targets for sophisticated criminal networks and state-sponsored attackers. The Qantas breach underscores the persistent threats facing organizations across all sectors, particularly airlines and travel companies that process vast amounts of personal and financial information.

Qantas has urged customers to remain vigilant against potential phishing scams or suspicious communications that could emerge as a result of the incident. The airline said it is cooperating closely with cybercrime authorities and regulators to investigate the breach and mitigate any further risks.

The company also encouraged affected customers to update their passwords and enable multi-factor authentication wherever possible to enhance their account security.