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Delta Air Lines is exploring the use of artificial intelligence (AI) to determine ticket prices, moving beyond traditional methods based on timing and demand. The airline is testing a system that uses AI to set fares according to what it predicts individual passengers are willing to pay. Currently, this approach is applied to about 3% of domestic fares, with plans to increase that figure to 20% by the end of the year.
Glen Hauenstein, President of Delta Air Lines, commented during an investor call on July 10: "We like what we see. But we’re going to take our time and make sure that the rollout is successful…It's all about giving people more choice, more pricing options, and more products and services in every cabin."
The AI pricing system was developed in collaboration with Israeli tech company Fetcherr. It processes large volumes of real-time data, considering factors such as previous purchases and browsing patterns for each search.
