What just happened? Delta Air Lines has categorically denied using artificial intelligence to set ticket prices based on individual customer data, responding to concerns raised by several members of the US Senate. The airline issued its statement following criticism from lawmakers who alleged that Delta was exploring advanced pricing models designed to tailor fares to the maximum amount each customer might be willing to pay – a practice sometimes referred to as surveillance pricing.
The controversy erupted after Senators Ruben Gallego, Mark Warner, and Richard Blumenthal sent a letter questioning Delta's intentions regarding AI-driven pricing. They argued that such technology could expose travelers to higher fares based on their individual "pain points," especially as household expenses continue to rise nationwide.
In a written response to lawmakers, Delta CEO Ed Bastian stated that the criticisms were based on misinterpretations. He affirmed that Delta does not – and has no plans to – set fares for individual customers based on personal data.
According to Bastian, ticket prices are determined by traditional market forces such as competition, route demand, and advance purchase timing, not by leveraging unique customer information. Delta emphasized that all customers are presented with the same fares for a given route and class, with price variations depending on factors like trip timing, destination, and seat availability.
While Delta acknowledged testing AI tools in partnership with technology firm Fetcherr, the company described these systems as analytical enhancements to support human fare analysts. Rather than targeting individuals, Delta says its AI aggregates large-scale market data to generate real-time pricing recommendations, which can result in either fare increases or decreases, depending on demand.
Currently, the technology is used across a limited portion (about three percent) of Delta's domestic network, with plans to expand AI-assisted pricing to 20 percent of routes by the end of the year.
Despite these assurances, some lawmakers remain skeptical, citing past remarks from Delta executives that suggest a long-term goal of deploying AI is to deliver more personalized offers to customers. Critics warn that even data labeled as "aggregated" can act as a proxy for individual targeting if pricing algorithms consider patterns such as browser type, location, or past behavior.
The public debate continues as lawmakers seek greater clarity and, in some cases, propose federal regulations to prohibit the use of AI in setting prices based on personal data. Delta, for its part, insists that nothing is changing in how it employs AI: fare offers will remain broadly available and based solely on trip-specific – not personal – information.
