Delta Air Lines has assured U.S. lawmakers it will not use artificial intelligence to charge customers individualized ticket prices, pushing back on public concern and political criticism.

In response to a July 21 letter from Senators Ruben Gallego, Mark Warner, and Richard Blumenthal, Delta wrote on Friday:

“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. Our ticket pricing never takes into account personal data.”

The lawmakers had previously warned that AI-powered pricing systems could exploit consumers by raising fares to their personal "pain point." Their comments followed a growing public debate over how AI could be used to optimize profits at the expense of transparency and fairness in airfare.

While Delta confirmed it has not used personalized pricing, it did reiterate its plan to implement AI-based revenue management technology on 20% of its U.S. routes by the end of 2025, in collaboration with Fetcherr, a company that builds AI tools for airline pricing.

The senators welcomed Delta’s commitment but said more detail is needed.

“Delta is telling their investors one thing, and then turning around and telling the public another. If Delta is in fact using aggregated instead of individualized data, that is welcome news,” said Senator Gallego, who also accused the company of sending mixed messages to investors and the public.

Delta declined to comment on Gallego’s statement. The tension stems in part from a December comment by Delta President Glen Hauenstein, who said the airline’s AI tools are capable of predicting “the amount people are willing to pay for the premium products related to the base fares.”

That phrasing raised red flags for lawmakers, especially following recent concerns voiced by American Airlines CEO Robert Isom, who said:

“Talk about using AI in that way, I don’t think it’s appropriate. And certainly from American, it’s not something we will do.”

In response to broader concerns, Representatives Greg Casar and Rashida Tlaib introduced a bill last week that would ban the use of AI to set prices or wages based on personal data. The proposal specifically prohibits airlines from altering prices based on search behavior—such as after seeing a customer look up a family obituary.

The legislation echoes findings from a Federal Trade Commission (FTC) report released in January. The report warned that some retailers use consumer location, demographics, and even mouse movements to influence personalized pricing. It included a hypothetical scenario where a new parent might see inflated prices on baby thermometers, based on their perceived urgency.

In its letter, Delta emphasized that the use of AI is not new to the airline industry, and that dynamic pricing—where fares fluctuate based on market conditions—has been in place for decades.

“Given the tens of millions of fares and hundreds of thousands of routes for sale at any given time, the use of new technology like AI promises to streamline the process by which we analyze existing data and the speed and scale at which we can respond to changing market dynamics,” Delta said.

The airline stated that these systems adjust to factors such as customer demand, fuel prices, and competitive pressure, but not individual consumer data.

Q: Is Delta using AI to set personalized airfare prices?
A: No. Delta says it has never used, is not testing, and does not plan to use AI to set individualized prices based on personal data.

Q: What AI pricing tools is Delta using?
A: Delta plans to deploy AI-based revenue management tools from Fetcherr across 20% of its domestic network by the end of 2025.

Q: Why are lawmakers concerned?
A: Lawmakers fear AI could raise fares to each customer’s “pain point,” and they want more transparency on what data Delta collects.

Q: Did Delta suggest AI could predict willingness to pay?
A: Yes. In December, Delta’s president said its system could forecast how much people would pay for premium products, prompting scrutiny.

Q: Are there efforts to regulate AI-based pricing?
A: Yes. Lawmakers have proposed a bill banning companies from using personal data to set prices or wages, especially in industries like air travel.

Delta’s statement is a response—not a proactive commitment. After public backlash and pressure from lawmakers, the airline clarified that it will not use AI to personalize ticket prices based on consumer data. The move suggests that Delta was testing the boundaries of acceptable use until it was forced to backpedal under regulatory and reputational pressure.

While the company’s use of AI for dynamic pricing may help it adapt faster to market changes, the backlash reveals how easily consumer confidence can erode if data transparency is unclear. With federal legislation now in motion, airlines and other industries may soon face stricter limits on how AI interacts with personal data—a debate where Delta’s response is now front and center.

Editor’s Note: This article was created by Alicia Shapiro, CMO of AiNews.com, with writing, image, and idea-generation support from ChatGPT, an AI assistant. However, the final perspective and editorial choices are solely Alicia Shapiro’s. Special thanks to ChatGPT for assistance with research and editorial support in crafting this article.