Delta Air Lines is Using AI to Set the Maximum Price You're Willing to Pay

In a bold move, Delta Air Lines has announced its intention to use artificial intelligence (AI) to set the maximum price you're willing to pay for flights. According to Fortune, the airline's president, Glen Hauenstein, revealed during the company's latest earnings call that Delta will be shifting away from static ticket prices and embracing dynamic pricing powered by AI.

The technology, which has been tested on 1 percent of Delta's ticket prices, has shown "amazingly favorable" results, with revenue increasing significantly. Hauenstein described the AI ticketing system as a "full reengineering of how we price and how we will be pricing in the future." He also acknowledged that the shift to AI-determined pricing could pose risks if not implemented correctly.

Delta is partnering with travel firm Fetcherr, which also works with Virgin Atlantic, Azul, WestJet, and Viva Aerobus. The AI system will operate 24/7 to determine custom ticket prices for individual customers in real-time, based on specific flights and times. This approach has raised concerns among privacy advocates, who worry that the airline is attempting to "see into people's heads" to figure out how much they're willing to pay.

"They are trying to see into people's heads to see how much they're willing to pay," said Justin Kloczko of Consumer Watchdog. "They are basically hacking our brains." Arizona Sen. Ruben Gallego described the approach as "predatory pricing" that's designed to "squeeze you for every penny."

Delta has taken heat in the past for charging customers different prices for flights, including reversing a decision to price tickets higher for solo travelers compared to groups in May. While the airline claims its AI ticketing system is transparent and fair, critics argue that it undermines trust and may prioritize profits over passenger needs.

The Future of Air Travel

The use of AI-powered pricing by Delta raises questions about the future of air travel. As airlines increasingly adopt this technology, passengers will need to be aware of how their personal data is being used and what the potential risks are. While dynamic pricing can offer benefits such as lower fares for off-peak travel or last-minute bookings, it also carries significant drawbacks, including price gouging and a lack of transparency.

As Delta rolls out its AI ticketing system nationwide, passengers will need to stay vigilant and educate themselves about the technology. Will this approach lead to a more personalized and efficient air travel experience, or will it exacerbate existing issues with airline pricing? Only time will tell.

A Multi-Year Process

The rollout of Delta's AI ticketing system is part of a multi-year process that aims to revolutionize the way airlines price their tickets. According to Hauenstein, this approach will allow Delta to offer customers "a price that's available on that flight, on that time, to you, the individual."

But as the technology continues to evolve, so too do concerns about its impact on passengers and society at large. As one passenger pointed out, "I don't want some algorithm deciding how much I'm willing to pay for a ticket." Will Delta's AI-powered pricing system deliver on its promises of greater transparency and efficiency, or will it further erode trust in the airline industry?