Will AI End Cheap Flights? Critics Attack Delta’s “Predatory” AI Pricing.
UNITED STATES, JUL 16 – Delta aims to replace static pricing with AI-driven personalized fares on 20% of domestic flights by year-end, boosting revenue by up to 9% per passenger in early tests.
- Delta Air Lines announced plans to let AI determine 20% of ticket prices by the end of 2025, expanding from about 3% now.
- The airline aims to replace static pricing with individualized prices set by an AI 'super analyst' working in real time to maximize revenue.
- Delta's initial AI pilot showed favorable revenue results, and the company partners with Israeli firm Fetcherr to develop the pricing system.
- Senator Ruben Gallego criticized Delta's AI pricing as 'predatory pricing' and vowed to block it, while privacy advocates raised concerns over potential discrimination and lack of transparency.
- Delta could face regulatory and public backlash as AI-driven personalized pricing expands, possibly prompting legal scrutiny and calls for stronger privacy protections.
15 Articles
15 Articles
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