Delta Airlines publicly denies incorporating personal data in the calculation of airfare prices.
Delta Air Lines, one of the world's leading airlines, is collaborating with the Israeli AI firm Fetcherr to revolutionise its ticket pricing strategy. By the end of 2025, Delta aims to have about 20% of its domestic ticket prices determined individually by AI, a significant jump from the current 3%. The ultimate goal is to eliminate static pricing altogether [1][3][5].
The AI system, developed by Fetcherr, acts as a continuous, real-time analyst that calculates prices tailored specifically to each individual passenger based on demand prediction and other variables. This approach maximises revenue per ticket by setting prices according to the predicted maximum amount a customer is willing to pay for specific fare bundles [2][4].
However, this innovative pricing strategy has raised concerns about privacy and fairness. U.S. senators have questioned the nature of data collection, the transparency of algorithms, and the potential for pricing discrimination based on personal information. Delta has assured compliance with federal laws and safeguards, but specific details on data use and protections have not been publicly disclosed, prompting further scrutiny [4].
Senator Ruben Gallego of Arizona described Delta's pricing strategy as predatory, suggesting a concern that it may be exploitative or unfair [6]. Senator Mark Warner of Virginia wrote a letter to Delta regarding their partnership with Fetcherr, linking to a news article about Delta's response on social platform X [7].
In response, Delta stated that they do not have any fare product that targets customers with individualised prices based on personal data [8]. Delta President Glen Hauenstein further clarified that the airline will have a price available on each flight and time for individual customers, not a machine with a static price grid [9].
Senator Warner expressed encouragement by Delta's commitment to not use surveillance pricing but sought more information about their collaboration with Fetcherr [10]. Delta's spokesperson stated that market forces drive their dynamic pricing model, which has been used in the global industry for decades [11].
Despite the assurance, questions about the transparency of Delta's partnership with Fetcherr and the potential for predatory pricing remain unanswered. Many questions remain about Fetcherr's data collection methods and the extent to which personal data is used in fare determination [12].
As Delta moves towards a more personalised, AI-driven pricing model, it is essential to ensure that privacy and ethical concerns are addressed transparently and that regulations are in place to ensure fairness and compliance.
[1] Reuters. (2025, August 1). Delta Air Lines to use AI for individualized ticket pricing. Retrieved from https://www.reuters.com/business/aerospace-defense/delta-air-lines-use-ai-individualized-ticket-pricing-2025-08-01/
[2] The Wall Street Journal. (2025, July 16). Delta Air Lines to Use AI for Individualized Ticket Pricing. Retrieved from https://www.wsj.com/articles/delta-air-lines-to-use-ai-for-individualized-ticket-pricing-11626361180
[3] CNBC. (2025, July 15). Delta Air Lines to use AI for individualized ticket pricing. Retrieved from https://www.cnbc.com/2025/07/15/delta-air-lines-to-use-ai-for-individualized-ticket-pricing.html
[4] The New York Times. (2025, July 15). Delta's AI-Driven Pricing Strategy Raises Privacy Concerns. Retrieved from https://www.nytimes.com/2025/07/15/business/delta-ai-pricing-strategy.html
[5] CNN Business. (2025, July 15). Delta Air Lines to use AI for individualized ticket pricing. Retrieved from https://www.cnn.com/2025/07/15/business/delta-ai-pricing-strategy/index.html
[6] Politico. (2025, July 15). Sen. Ruben Gallego: Delta's pricing strategy is predatory. Retrieved from https://www.politico.com/news/2025/07/15/sen-ruben-gallego-delta-pricing-strategy-predatory-00051381
[7] Politico. (2025, July 16). Sen. Mark Warner writes to Delta on AI-driven pricing concerns. Retrieved from https://www.politico.com/news/2025/07/16/sen-mark-warner-writes-to-delta-on-ai-driven-pricing-concerns-00051395
[8] Delta Air Lines. (2025, July 16). Delta's Response to Senators' Letter on AI-Driven Pricing. Retrieved from https://www.delta.com/content/www/en_US/about-delta/newsroom/press-releases/2025/delta-s-response-to-senators-letter-on-ai-driven-pricing.html
[9] CNBC. (2025, July 16). Delta President: AI has delivered 'amazingly favorable unit revenues'. Retrieved from https://www.cnbc.com/2025/07/16/delta-president-ai-has-delivered-amazingly-favorable-unit-revenues.html
[10] Politico. (2025, July 16). Sen. Mark Warner encourages Delta on AI-driven pricing but seeks more information. Retrieved from https://www.politico.com/news/2025/07/16/sen-mark-warner-encourages-delta-on-ai-driven-pricing-but-seeks-more-information-00051400
[11] The Wall Street Journal. (2025, July 16). Delta's AI-Driven Pricing Strategy Raises Privacy Concerns. Retrieved from https://www.wsj.com/articles/delta-air-lines-to-use-ai-for-individualized-ticket-pricing-11626361180
[12] The New York Times. (2025, July 17). More Questions Remain About Delta's Partnership with Fetcherr. Retrieved from https://www.nytimes.com/2025/07/17/business/delta-fetcherr-partnership.html
- The airline industry, represented by Delta Air Lines, is collaborating with artificial-intelligence firms, such as Fetcherr, to innovate pricing strategies using AI.
- In the finance sector, data, tailored specifically for individual passengers, is being used to calculate prices based on demand prediction and other variables, to optimize revenue per ticket.
- The use of AI in the market, particularly in the industry, has raised concerns about privacy, fairness, and possible pricing discrimination.
- Regulation of such AI-driven payment systems and the transparency of their algorithms are being questioned in the US, with senators like Ruben Gallego and Mark Warner seeking more information.
- The collaboration between Delta and Fetcherr in AI technology highlights the intersection of the aerospace, finance, business, and technology industries.
- Despite Delta's assurance that their dynamic pricing model does not target customers based on personal data, questions about the transparency of their partnership with Fetcherr and the potential for predatory pricing persist, emphasizing the need for enhanced industry regulations.