Delta Air Lines has responded to recent concerns raised by U.S. Senators Ruben Gallego, Richard Blumenthal, and Mark Warner regarding its use of artificial intelligence (AI) in its dynamic pricing model.
In a letter dated 31 July 2025, Delta’s Executive Vice President and Chief External Affairs Officer, Peter Carter, clarified the airline’s approach, addressing misconceptions and emphasizing its commitment to transparency, fairness, and customer trust.
Clearing Up Misconceptions About AI Pricing
The senators’ inquiry suggested that Delta might be using AI for “individualized” or “surveillance” pricing, leveraging personal data like purchasing history or sensitive circumstances to set tailored prices.
Carter firmly denied these claims, stating that such assumptions have fueled misinformation. Delta does not use, test, or plan to implement pricing strategies that target individual customers based on personal data.
Instead, the airline relies on aggregated, non-personal data to inform its pricing decisions, ensuring compliance with privacy, pricing, and advertising laws.
Delta’s AI-powered pricing tool, developed in collaboration with Fetcherr, serves as a decision-support system.
It provides analysts with insights to refine pricing strategies, aligning them with market dynamics and competitive pressures.
The technology does not set prices independently but enhances the efficiency of existing processes. Analysts review AI-generated recommendations to ensure they align with Delta’s business goals and customer-focused strategy.
How Delta’s Pricing Works
Delta’s ticket prices are driven by market competition and objective criteria, not individual consumer data. Factors influencing fares include:
- Customer demand: Aggregated data on seat demand for specific routes.
- Competitive offers: Pricing adjustments to match or beat competitors.
- Route performance: Analysis of flight profitability and operational costs.
- Service costs: Expenses like jet fuel and other operational factors.
Fares are filed publicly through the Airline Tariff Publishing Company (ATPCO) multiple times daily. These fares come with clear, objective rules based on factors like origin, destination, advance purchase, stay length, refundability, and travel experience.
Customers can access and compare prices on Delta’s website or app without signing in or sharing personal information, ensuring transparency and accessibility.
Delta is piloting Fetcherr’s AI pricing recommendation tool in select domestic and international markets. The technology streamlines pricing by:
- Aggregating purchasing data for specific flights and routes.
- Forecasting demand to anticipate market trends.
- Adapting to changing market conditions in real time.
- Analyzing thousands of variables simultaneously to optimize pricing.
This allows Delta’s analysts to focus on strategic tasks, reducing manual work and accelerating decision-making. Importantly, no personal customer data is shared with Fetcherr, and pricing decisions remain free of individual targeting.
AI Across Delta’s Wider Operations
Delta is also exploring AI to enhance other areas of its business, always with a focus on improving customer experience and operational efficiency:
- Reservations: AI tools help specialists answer complex customer queries faster, improving service quality.
- Maintenance: AI predicts maintenance needs, boosting aircraft reliability and reducing delays.
- Crew Scheduling: AI anticipates crew replacement needs, ensuring smoother operations.
These initiatives reflect Delta’s commitment to innovation while maintaining high standards of safety, security, and customer trust.
Commitment to Transparency and Ethics
Delta’s Privacy Policy clearly outlines how customer data is used, stored, and protected. The airline also provides AI Terms of Use, informing customers when they interact with AI-driven features.
Delta’s AI governance framework, guided by its core values—“The Way We Fly” and “Rules of the Road”—ensures ethical use of technology.
This approach balances innovation with responsibility, reinforcing Delta’s reputation as a customer-focused airline.
Moving Forward
Delta’s adoption of AI is part of its ongoing effort to stay competitive in a fast-evolving industry. By leveraging technology to streamline operations and enhance customer experiences, Delta aims to remain the airline of choice.
The airline’s clear rejection of individualized pricing and its commitment to transparency should reassure customers and stakeholders alike.
As Delta continues to innovate, it stressed that it remains dedicated to upholding trust, fairness, and ethical standards in all its practices.
