Delta’s AI Pricing Plan Draws Scrutiny From US Senators

Three US senators are demanding answers from Delta Air Lines regarding its plan to use artificial intelligence to set ticket prices. The inquiry comes after Delta announced it would implement AI-driven pricing technology on 20% of its domestic network by the end of 2025 through a partnership with AI firm Fetcherr.

In a letter dated July 22, Democratic Senators Ruben Gallego, Mark Warner, and Richard Blumenthal expressed concerns about data privacy and potential price discrimination. "Delta's current and planned individualized pricing practices not only present data privacy concerns, but will also likely mean fare price increases up to each individual consumer's personal 'pain point' at a time when American families are already struggling with rising costs," the senators wrote.

They cited comments from a Delta executive who told investors the AI system could price tickets based on what passengers are “willing to pay for premium products” related to base fares. Delta has denied using personal data for individualized pricing. In a statement, the airline said, “There is no fare product Delta has ever used, is testing, or plans to use that targets customers with individualized offers based on personal information.”

Delta emphasized that dynamic pricing has existed for more than 30 years and adjusts based on broad demand, not personal data. “Our use of AI replaces manual pricing processes, enhances forecasting accuracy, and adapts in real time to market conditions,” the airline stated. “All customers see the same fares and offers across all retail channels.”

This is not the first time lawmakers have raised concerns over airlines’ pricing strategies involving personal data. In January, Blumenthal, along with Senators Maggie Hassan and Josh Hawley, questioned Frontier and Spirit Airlines about potentially using customer data to assign different seat fees for passengers on the same flight.

Delta unveiled its AI-based pricing plan during its latest earnings call, citing “amazingly favorable” results from early trials. It began testing AI pricing on 1% of tickets in 2024 and has since expanded it to 3%. The company aims to reach 20% by the end of 2025. Delta President Glen Hauenstein said in November, “We will have a price that’s available on that flight, at that time, to you, the individual.”

The technology is developed by Fetcherr, which also works with Virgin Atlantic, Azul, WestJet, and Viva. In May, Delta faced backlash for testing higher ticket prices for solo travelers compared to groups—a move the airline later reversed.

According to Philip Carls, board member, Priceagent, Delta’s adoption of AI-driven pricing could undermine customer trust. “This will likely dent customer trust since, unlike traditional pricing, passengers won’t know if they’re getting a fair deal or being targeted,” Carls  told PYMNTS. 

He added that the lack of transparency around which data points influence pricing could elevate privacy concerns. Carls also questioned how the system would function across third-party sales channels like travel agencies and aggregators. He warned that Delta’s competitive edge may be short-lived if other carriers adopt similar models. Additionally, he noted that while such pricing strategies may be legal in the United States, they could face tougher scrutiny in jurisdictions such as the European Union and the United Kingdom.