Carter emphasized that Delta does not use or plan to use fare products that target customers with individualized prices based on personal data. He added:
“There is no fare product Delta has ever used, is testing or plans to use that targets customers with individualized prices based on personal data. Furthermore, we have zero tolerance for discriminatory or predatory pricing and fully comply with applicable laws in privacy, pricing and advertising. Our AI powered pricing functionality is designed to enhance our existing fare pricing processes using aggregated data. This technology is a decision-support tool that simply provides informed insights for our analysts, who oversee and fine-tune the recommendations to ensure they are consistent with our business strategy. We are deeply committed to enhancing the customer experience and continuously strive to remain the airline of choice for our customers.”
He clarified that ticket prices at Delta are determined by market dynamics and competition rather than individual targeting:
“To be clear, Delta’s ticket prices are dictated by market dynamics and vigorous competition. In fact, the AI pricing functionality recommends pricing adjustments in both directions to enhance market competitiveness and drive sales, benefiting both our customers and our business. Fares are publicly f iled through ATPCO multiple times daily and contain objective, publicly available fare rules that ensure all customers have access to the same fares and offers based on objective criteria provided by the customer such as origin and destination, advance purchase, length of stay, refundability, and travel experience selected. To reiterate, prices are not targeted to individual consumers. Furthermore, customers are not required to sign in on delta.com or the app to shop and compare prices. Indeed, customers can view and compare prices without providing Delta any personal information whatsoever.”
Carter also noted that airlines have used optimized pricing systems for over thirty years based on factors like demand for seats at an aggregate level as well as costs such as jet fuel.
Delta is currently piloting an AI-powered recommendation system developed by Fetcherr in domestic and international test markets. According to Carter:
“As part of our culture of continuous innovation, Delta is evaluating the AI pricing recommendation functionality developed by Fetcherr in domestic and international test markets... We do not share any personal information with Fetcherr and as noted above, our t icket pricing never takes into account personal data.”
He outlined how AI tools help aggregate purchasing data for routes; forecast demand; adapt quickly to new market conditions; factor thousands of variables simultaneously; assist reservations specialists; improve aircraft maintenance predictions; and help crew scheduling.
Delta states it discloses its practices around personal information usage in its Privacy Policy (https://www.delta.com/us/en/legal/privacy-and-security), follows responsible AI principles including providing terms of use (https://www.delta.com/us/en/legal/ai-terms-of-use), informs users when they interact with AI systems (https://news.delta.com/way-we-fly-deltas-culture-sets-us-apart), maintains a comprehensive governance framework around these technologies guided by company values such as "The Way We Fly," "Rules of the Road," ethics standards (https://news.delta.com/rules-road-how-deltas-core-values-guide-everything-we-do), safety protocols (https://news.delta.com/delta-recognized-safety-excellence-international-air-transport-association), security policies (https://www.delta.com/us/en/legal/privacy-and-security), responsibility commitments (https://news.delta.com/delta-partners-veterans-support-organizations-honor-military-community), trust initiatives (https://news.delta.com/how-delta-building-trust-through-transparency-and-action), innovation strategies (https://news.delta.com/delta-named-one-most-innovative-companies-world-fast-company).
Carter concluded:
“As Delta continues to integrate advanced technologies across our business, we have adopted a comprehensive AI governance framework that balances operational enhancements with the highest standards of safety, security, and trust for our customers and employees... Again thank you for your interest.”
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