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Delta plans to use AI in ticket pricing draws fire from US lawmakers

UNITED STATES, JUL 23 – Delta plans to increase AI-driven dynamic pricing from 3% to 20% of domestic fares by end of 2025 despite concerns from lawmakers about price-gouging and discriminatory effects.

  • Delta Air Lines announced on July 10, 2025, that it currently uses AI-driven pricing for 3% of its domestic tickets and plans to expand this to 20% by year-end.
  • The expansion follows Delta's long use of dynamic pricing, but has prompted scrutiny from U.S. senators concerned about potential data privacy violations and fare increases targeting individual consumers.
  • Delta president Glen Hauenstein explained that the airline is transitioning from fixed manual pricing methods to AI-driven dynamic pricing, which quickly evaluates vast amounts of data to determine optimal fares, while stressing that no pricing is personalized based on individual customer information.
  • Hauenstein explained that the era of fixed pricing structures and manual tweaks is over, with AI now capable of determining the optimal price instantly. However, senators cautioned that this approach could lead to fare increases tailored to each consumer’s maximum willingness to pay, raising concerns amid ongoing economic challenges for families.
  • Delta insists the AI technology streamlines pricing without personal data use, but the lawmakers' concerns suggest possible regulatory challenges as dynamic AI pricing becomes more widespread in the airline industry.
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Axios broke the news in Washington, United States on Tuesday, July 22, 2025.
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