Delta is using AI to maximise the price you’re willing to pay

Delta’s AI-driven pricing model sparks ethical concerns.

Delta Air Lines is actively transitioning to a ticket pricing system powered by artificial intelligence, aiming to calculate the maximum amount each individual customer is prepared to pay for a flight. This shift was detailed in a recent earnings call, where the company shared its intentions to extend AI-driven pricing from the current 3 percent of tickets to 20 percent by the end of 2025. The airline launched initial tests last year on just 1 percent of tickets and was encouraged by what it described as “amazingly favourable” results.

Glen Hauenstein, Delta’s president, explained to investors that this new approach involves presenting a price tailored specifically to the passenger, based on the flight and time selected. He emphasised that the AI model is still in a “heavy testing phase” but that Delta is impressed with the technology’s performance and plans to expand it further.

Although personalisation in pricing isn’t exclusive to Delta, the airline has been more transparent than most about adopting such technology. In a prior earnings call, Hauenstein outlined that this initiative marks a complete transformation in the company’s pricing strategy—a long-term project that will unfold in several phases. While the company is optimistic about the revenue potential, he also cautioned that the strategy could pose risks if implemented poorly or without adequate safeguards.

Delta’s AI pricing is powered by Fetcherr, a travel tech firm that also works with other airlines such as Virgin Atlantic, Azul, Viva Aerobus, and WestJet. For Delta, the AI functions like a “super analyst,” operating continuously to offer custom ticket prices in real time for individual customers based on specific flights and timings.

It’s worth noting that airlines have long charged varied fares for the same route depending on multiple factors—such as booking time, the website used, or even the browser involved. Delta has followed this model for years, but with AI, the scope and precision of such pricing are expected to significantly increase.

Earlier this year, Delta received backlash after experimenting with higher ticket prices for solo travellers compared to those booking in groups. The policy was later reversed, but the incident has raised questions about how invasive this new AI pricing strategy might become. Some critics are concerned about the privacy implications of such technology.

Consumer rights advocates have voiced unease over the direction Delta is taking. Justin Kloczko of Consumer Watchdog remarked that the airline is essentially attempting to read people’s minds in order to determine what they’re willing to pay. He likened the practice to “hacking our brains.” Meanwhile, Senator Ruben Gallego from Arizona labelled the method as “predatory pricing,” accusing Delta of trying to extract the maximum possible amount from each traveller.