Artificial intelligence could soon significantly influence air travel pricing.

Airlines are partnering with AI firms to provide “tailored” pricing to consumers by leveraging AI tools to assess personal data and information.

According to President Glen Hauenstein in a recent earnings call, Delta Air Lines is currently utilizing AI technology from the Israeli startup Fetcherr for some of its domestic routes. Hauenstein indicated that while the technology remains in the testing stages, Delta intends to broaden its AI application by year-end. Presently, AI is applied to only 3 percent of domestic airfare, with an ambition to elevate this figure to 20 percent, as reported by ABC News.

Nevertheless, in a recent correspondence to members of Congress, the airline denied employing AI tools to inflate prices unfairly, as reported by Reuters last week.

Fetcherr stands out as a key provider of AI-driven dynamic pricing, collaborating with various airlines, such as Delta, Azul, Virgin Atlantic, WestJet, and Royal Air Maroc, as noted by Aviation Week. Delta has asserted that it does not share individual customer information with Fetcherr.

Nonetheless, the airline has been under fire for its statements regarding the use of AI to refine certain fare prices. US legislators, including Democratic Arizona Senator Ruben Gallego, have charged Delta with “conveying one message to their investors and then presenting a contradictory narrative to the public,” according to Gallego, who also suspects Delta of engaging in “predatory pricing.”

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