In response to growing scrutiny from U.S. lawmakers and mounting public concern, Delta Air Lines has officially stated it will not use artificial intelligence to set personalized ticket prices based on individual consumer data.
The airline’s announcement follows criticism from Democratic Senators Ruben Gallego, Mark Warner, and Richard Blumenthal, who raised alarm over the potential for AI-driven pricing systems to exploit consumers by charging them based on their personal “pain point”—essentially, the most they’d be willing to pay.
Delta’s Firm Denial
Delta, headquartered in Atlanta, clarified in a letter addressed to the senators that while it plans to expand its use of AI-based revenue management tools—developed in collaboration with AI pricing firm Fetcherr—it has never used nor intends to use AI to create fares based on personal data.
“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,” Delta stated.
The airline emphasized that while dynamic pricing—a long-standing industry practice—remains central to its pricing strategy, it is based on broader market variables such as fuel prices, route demand, and competition, not specific user data.
Lawmakers Want More Clarity
Despite Delta’s assurances, lawmakers remain skeptical. Senator Gallego pointed out inconsistencies in Delta’s communication:
“Delta is telling their investors one thing, and then turning around and telling the public another,” he said. “If Delta is in fact using aggregated instead of individualized data, that is welcome news.”
The debate was further inflamed by a 2023 remark from Delta President Glen Hauenstein, who had noted that AI tools could eventually predict “the amount people are willing to pay” for premium services—a statement critics see as a red flag.
Industry Reaction and Legislative Pressure
American Airlines CEO Robert Isom also weighed in, warning that AI-driven fare personalization could erode consumer trust. “Talk about using AI in that way—I don’t think it’s appropriate,” he said.
In a more aggressive move, Democratic Representatives Greg Casar and Rashida Tlaib introduced a bill to ban the use of AI in price-setting and wage decisions when based on Americans’ personal data. The proposed legislation even prohibits airlines from raising prices in response to sensitive searches, like looking up flights for a family funeral.
This push comes on the heels of an FTC staff report highlighting that some retailers already leverage personal data—from user location to mouse movements—to tailor prices, potentially leading to unfair or discriminatory practices.
The Future of AI in Airline Pricing
While Delta distances itself from individualized pricing models, it remains committed to using AI for operational efficiency. Its partnership with Fetcherr aims to integrate AI into 20% of its domestic network by the end of 2025—not to target individuals, but to optimize fare management at scale.
“AI promises to streamline the process by which we analyze existing data and the speed and scale at which we can respond to changing market dynamics,” Delta said.
The airline industry may be embracing AI, but public and regulatory pressure is pushing carriers to draw clear ethical boundaries. The challenge ahead is balancing technological advancement with consumer fairness and transparency—a debate that’s only just beginning.
