Alerts Sign-up
American Airlines CEO Robert Isom has criticized competitors for using artificial intelligence in airfare pricing. "I don't think it's appropriate," Isom stated, directing his comments towards Delta Air Lines. Earlier this month, Delta announced its use of AI to price about 3% of its domestic network through a partnership with Fetcherr and aims to increase this to 20% by year-end.
Delta President Glen Hauenstein compared AI usage to a "super-analyst" working on a small portion of its network, which has grown from 1% since last fall. Despite positive feedback from Delta, the move has drawn scrutiny from lawmakers. Three Democratic senators have expressed concern over Delta's AI expansion in a letter to CEO Ed Bastian, requesting more information by early August.
In response, a Delta spokesperson told TPG that various market forces drive dynamic pricing models used globally for decades and new technology streamlines this process. The airline complies with all pricing regulations and does not use fare products targeting customers with individualized offers based on personal information.
