Airline Says it Won't Use Customer Data to Price Tickets, Plans Say Otherwise

Delta Airlines is on the defensive after several US lawmakers raised alarm bells over the possibility of AI-generated airfare tailored to each passenger’s “pain point.” In a recent letter, the airline assured senators that it does not, has not, and will not use artificial intelligence to set individualized ticket prices based on personal data… though no one is sure who to believe.

“There is no fare product Delta has ever used, is testing, or plans to use that targets customers with individualized prices based on personal data,” the airline stated firmly. According to Delta, all pricing decisions are based on factors like demand, competition, and market conditions rather than your web search history, your demographics, or what you say when ‘no one is listening’.

This clarification came in response to concerns voiced last week by Senators Ruben Gallego, Mark Warner, and Richard Blumenthal, who warned that individualized pricing could push airfares to a near breaking point for passengers. The senators cited Delta’s partnership with Fetcherr, an AI pricing company, and a 2023 comment by Delta President Glen Hauenstein suggesting AI could help estimate “what people are willing to pay” for certain products.

Delta maintains that, while it does plan to expand AI-based revenue management tools across 20 percent of its domestic network by late 2025, those systems will not use personally identifiable data. Instead, Delta says the goal is to improve responsiveness to market shifts.

Still, lawmakers remain skeptical. Representatives Greg Casar and Rashida Tlaib introduced a bill last week that would ban companies, including airlines, from using AI to set prices or wages based on personal data. Their proposal follows a January FTC report warning that companies are already leveraging everything from your ZIP code to your mouse movements to tailor prices in real time.

For its part, Delta insists this isn’t about personalization, it’s about efficiency—and that AI will simply help it manage the millions of fare variations already on offer. Whether that’s enough to calm regulators remains to be seen.

FMI: www.delta.com