Delta aims for AI-driven pricing on 20% of flights by year's end

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Delta aims for AI-driven pricing on 20% of flights by year's end

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Glen Hauenstein, President of Delta Air Lines | Official Website

By Sky Industry News

Jul 15, 2025

Delta Air Lines is expanding its use of artificial intelligence in pricing strategies. The Atlanta-based airline announced plans to utilize AI for setting prices on about 20% of its domestic flights by the end of 2025. This marks a significant increase from the current usage, where AI influences pricing on approximately 3% of Delta's domestic network.

Last fall, Delta disclosed that it had started incorporating AI into a small fraction of its bookings, initially affecting only 1% of the airline's operations. This information was shared during Delta's November 2024 investor day presentation.

Glen Hauenstein, President of Delta Air Lines, discussed this initiative during the company's second-quarter earnings call. "Our goal is to have about 20% by the end of the year," he said, describing the project as part of a "testing phase" with AI travel firm Fetcherr. He further stated, "We like what we see. We like it a lot, and we're continuing to roll it out."

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The airline industry has seen substantial investments in technology upgrades in recent years, including enhancements to passenger-facing technology and behind-the-scenes systems such as revenue management. These investments have led to innovations like improved bag-tracking features and tools for rebooking flights.

There has been an increased focus on sophisticated pricing tactics among airlines. This spring revealed instances where some U.S. airlines charged solo passengers more than those traveling in groups. While it's unclear if AI played a role in these strategies, experts note advancements in estimating passengers' willingness to pay.

Hauenstein previously mentioned that AI would lead to a "full reengineering" of pricing methods at Delta. He emphasized taking time with the rollout: "We're continuing to roll it out, but we're going to continue to take our time and make sure the rollout is successful as opposed to trying to rush it."

A survey by KPMG found that two-thirds of business leaders expect AI to transform their businesses within two years, indicating its growing impact across sectors including travel.