Delta using AI to determine the price you pay for plane tickets

Delta Airlines is facing criticism for its use of artificial intelligence to determine ticket prices, a practice known as surveillance pricing.

Delta president, Glen Hauenstein told investors earlier this month the airline plans to expand the practice by the end of 2025.

Currently, Delta uses AI to set prices on 3% of its flights, with plans to expand this to 20% by the end of the year. This strategy involves moving away from fixed fares to more individualized pricing.

Dr. Alan Mislove, Senior Associate Dean at Northeastern University’s Khoury College of Computer Sciences, describes surveillance pricing as an extreme form of price personalization.

While the practice is often criticized for a lack of transparency, Delta is now being open about using A.I.

But it’s unclear how prices are determined.

A Delta spokesperson tells Boston 25:

“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 or otherwise. A variety of market forces drive the dynamic pricing model that’s been used in the global industry for decades, with new tech simply streamlining this process. Delta always complies with regulations around pricing and disclosures.”

U.S. Senator Ruben Gallego, a Democrat from Arizona, criticized Delta’s plans on X, warning against the use of AI algorithms to increase prices without transparency.

Sen. Gallego announced his intention to demand answers from Delta’s CEO.

The Federal Trade Commission (FTC) began investigating surveillance pricing before the Trump administration, but the current status of this investigation is unclear.

This is a developing story. Check back for updates as more information becomes available.

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