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

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.