Delta Airlines is stepping up its game with artificial intelligence, aiming to change the way travelers see ticket prices. The airline confirmed during its second-quarter earnings call that it’s expanding its use of AI-powered pricing tools, developed by Israeli tech company Fetcherr.
Delta president Glen Hauenstein revealed that the pilot program using Fetcherr has already priced about 3% of domestic tickets. “Today, we’re about 3% of domestic,” Hauenstein said. “Our goal is to have about 20% by the end of the year.” He added, “We can report back on what the actual numbers are, but you have to train these models as you might expect, and you have to give it multiple opportunities to provide different results.”
Delta believes AI will allow for more accurate demand-based pricing instead of traditional static fares. “We’re going to take our time and make sure that the rollout is successful as opposed to trying to rush it and risk that there are unwanted answers in there,” Hauenstein noted.
This shift could mean customers won’t see the same ticket price across the board. Instead, prices would fluctuate based on predictive demand models.
While dynamic pricing is legal and growing in popularity across industries, critics are sounding alarms. Arizona Sen. Ruben Gallego posted, “Delta’s CEO just got caught bragging about using AI to find your pain point—meaning they’ll squeeze you for every penny. This isn’t fair pricing or competitive pricing. It’s predatory pricing. I won’t let them get away with this.”
