Delta Air Lines caught heat over AI-powered personalized ticket pricing. The U.S. Transportation Secretary Sean Duffy raised alarms and promised investigations if airlines use AI to tailor prices based on individual consumer data.
The issue started with three Democratic senators accusing Delta of planning AI-driven fare hikes targeting each passenger’s “personal ‘pain point.’” Delta denied it and said it has not used AI to price individual tickets.
Soon after, Duffy made his stance clear:
“To try to individualise pricing on seats based on how much you make or don’t make or who you are, I can guarantee you that we will investigate if anyone does that.”
“We would engage very strongly if any company tries to use AI to individually price their seating.”
Delta confirmed it won’t use AI on individual pricing but plans to deploy AI revenue management tech on 20% of its domestic network by 2025 with Fetcherr, an AI pricing firm trusted by multiple airlines.
American Airlines CEO Robert Isom also warned that AI ticket pricing could erode consumer trust.
Meanwhile, lawmakers Greg Casar and Rashida Tlaib pushed legislation to ban AI-driven pricing tied to personal data, including bans on raising fares after sensitive searches like family obituaries.
Delta emphasized dynamic pricing has long existed, adjusting fares by demand, fuel costs, and competition — never by personal info.
The Transportation Department and Congress are now watching closely to keep AI pricing fair.