Is it fair? Delta’s AI fare pricing plan sparks political, consumer backlash
July 18, 2025
Delta Air Lines has quietly begun reshaping how airfares are set, introducing artificial intelligence into its pricing model—a move that has drawn both attention and criticism.
The airline is working with Israeli tech firm Fetcherr to roll out what it describes as a data-driven, real-time pricing system, a marked departure from traditional fare-setting methods.
Currently, approximately 3% of Delta’s domestic ticket sales are governed by AI. By the end of 2025, the airline intends to increase that to 20%, according to Delta President Glen Hauenstein.
Speaking during the airline’s recent earnings call, Hauenstein referred to the AI tool as a “super analyst,” part of what he called a “complete reengineering” of the pricing architecture.
The AI system does not merely respond to market-level variables like demand or seasonality. Instead, it pulls from a wide range of real-time data points, including a customer’s lifetime value, previous purchase behaviours, and even the specific context of the booking inquiry.
“We’re optimising revenue through our partnership with Fetcherr, leveraging AI-enhanced pricing solutions,” said Delta CEO Ed Bastian during the same call. “While we are still in the test phase, results are encouraging.”
Yet, the results, at least from a consumer perspective, have ignited a policy and ethical debate.
Delta AI fares: a shift toward personalised pricing
The technology places Delta at the forefront of a wider industry shift toward dynamic, hyper-personalised pricing, a strategy long used in sectors such as e-commerce and ride-sharing.
While airlines have always adjusted prices based on booking windows or seat availability, Delta’s system personalises fares based on who is searching and when.
Critics warn over Delta AI fares: “It’s predatory pricing”
Critics have seized on Delta’s AI fares strategy, suggesting that it amounts to a modern form of price discrimination. US Senator Ruben Gallego of Arizona was among the first to denounce the move publicly.
“Delta’s CEO just got caught bragging about using AI to find your pain point – meaning they’ll squeeze you for every penny,” Gallego posted on X (formerly Twitter). ”This isn’t fair pricing or competitive pricing. It’s predatory pricing.”
Delta’s CEO just got caught bragging about using AI to find your pain point — meaning they’ll squeeze you for every penny.
— Ruben Gallego (@RubenGallego) July 15, 2025
This isn’t fair pricing or competitive pricing. It’s predatory pricing.
I won’t let them get away with this.
Gallego added that he intends to block the airline’s AI pricing expansion, citing concerns about fairness, consumer privacy, and the potential for algorithmic manipulation.
“I won’t let them get away with this,” he added.
AI-generated airfares raise regulatory and consumer concerns
Delta’s pricing model may be seen as a test case for how AI intersects with public-facing commercial strategies. As George Slover, General Counsel and Senior Counsel for Competition Policy at the Center for Democracy and Technology (CDT), noted:
“With AI being used in such a high-stakes setting, it is imperative that agencies get it right.”
Slover noted that AI is being deployed across various sectors to enhance efficiency and accuracy, particularly in public service delivery. But he warned that commercial use must be transparent and subject to oversight, especially when pricing outcomes are directly tied to personal data.
There is also concern among some consumer advocates that if Delta’s model proves successful, other airlines may follow suit, potentially leading to industry-wide adoption and the erosion of the few pricing norms that currently benefit consumers.
Profits, algorithms, and public sentiment
For now, Delta is proceeding cautiously. Bastian said that the airline remains in a “heavy testing phase,” though initial financial performance indicators have been “encouraging.” On the operational side, AI is also being used to optimise maintenance and scheduling.
“In the operation, we’re driving efficiency through predictive intelligence that improves resource availability,” Bastian said.
Still, the company has not disclosed specific benchmarks for how much additional revenue the AI pricing model has generated or how often it may have charged two different customers significantly different amounts for the same seat.
An OAG report published earlier this year suggested that the pricing system may already be leading to sharp fare differences for identical flights, depending on the user’s data profile. Consumer groups say this could mean the gradual end of pricing tips and tricks, such as booking early or searching on certain days.
What travellers should know about AI-generated airfares
With AI-powered personalisation on the rise, some travel experts recommend taking extra steps to avoid personalised pricing. Among the suggested practices are browsing in incognito mode, clearing cookies, and using price comparison tools.
While these tactics may offer some protection, it remains unclear whether they can fully counteract a pricing model designed to learn and adapt with each search.
Delta’s move signals a broader shift in the travel sector—one that raises new questions about fairness, access, and transparency in digital marketplaces.
Whether this model becomes the norm will likely depend as much on regulatory pushback as on its financial success.
For now, the future of flight pricing is being written not by analysts but by algorithms.
