Delta Air Lines starts using AI to set ticket prices

Currently, about 3 percent of Delta’s fares are set using AI. By the end of the year, the company plans to increase that share to 20 percent. The technology is provided by Fetcherr, an Israeli firm that also works with other airlines including Virgin Atlantic, WestJet and VivaAerobus.

The system analyzes a wide range of real-time factors, such as a passenger’s booking history, search timing, travel route, baggage needs and market conditions. Based on this data, it generates a personalized price offer, which can be either lower or significantly higher than the average market rate.

Lack of transparency

As AI systems evolve, pricing models in the airline industry are undergoing major changes. In the past, fares were typically based on clear factors like booking date, destination and demand. Today, technology allows airlines to create personalized offers, which may challenge traditional strategies for finding low fares.

The algorithms behind personalized pricing are usually not disclosed. Passengers do not have access to information about which data points and parameters are used to determine the final price. As a result, it becomes difficult to assess what exactly influences the cost of a ticket.

Many jurisdictions have regulations that prohibit discrimination based on gender, race, income or place of residence. Without transparency, however, it is hard to determine whether AI-driven pricing models comply with those rules.

Delta is not the only airline adopting AI solutions. United Airlines, for example, uses generative AI to notify passengers about flight cancellations. According to analysts, other major carriers are likely to follow suit, which could further reshape airline pricing practices.

Earlier, Kazinform News Agency reported that China uses AI and algae to strengthen conservation of Great Wall.