Delta Air Lines is expanding its use of artificial intelligence (AI) to personalize ticket pricing, aiming for 20% of its fares to be individually determined by the end of 2025, up from the current 3%. The airline plans to move away from static, set prices toward a dynamic pricing model that adjusts fares based on passenger profiles, demand fluctuations, and other personal data. This AI-driven approach treats pricing like a live stock ticker, continuously monitoring variables to maximize revenue by charging customers according to their willingness to pay. Delta's president, Glen Hauenstein, confirmed the strategy to investors, emphasizing its role in boosting profitability. However, the move has drawn criticism from U.S. lawmakers and industry peers. American Airlines CEO Robert Isom condemned the practice as a "bait and switch" tactic that could mislead travelers and called the AI pricing strategy inappropriate. Critics fear that such individualized pricing could eliminate cheaper flight options and raise fares overall. Lawmakers are pressing Delta's CEO for answers, with some demanding regulatory intervention to prevent potential price manipulation. Additionally, concerns have been raised about the extent of data collection, including AI algorithms scraping personal information such as emails to assess passengers' maximum willingness to pay. The debate highlights broader questions about fairness and transparency as AI increasingly influences pricing in the travel industry.
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