Delta Wants 20% of Flights to Have AI-Powered Dynamic Pricing by the End of 2025

0
9K

Last year, Delta Air Lines announced it was testing out dynamic pricing on some flights using tools built by the tech company Fetcherr. And while the test was initially limited, executives from the company announced that 3% of flights now use AI pricing, and they hope to sell 20% of all tickets using a dynamic price by the end of the year.

Edward H. Bastian, the CEO of Delta, explained the strategy on an investors call last week, noting that it was “optimizing revenue through [its] partnership with Fetcherr,” an Israeli tech company founded in 2019, and “leveraging AI-enhanced pricing solutions.”

Hauenstein said the company was in a “heavy testing phase” but that executives at the company “like what we see.”

What does that mean? If you ask critics like Sen. Ruben Gallego, a Democrat from Arizona, it means Delta isn’t being fair about the way it’s pricing seats.

“Delta’s CEO just got caught bragging about using AI to find your pain point—meaning they’ll squeeze you for every penny,” Gallego wrote Tuesday on X. “This isn’t fair pricing or competitive pricing. It’s predatory pricing. I won’t let them get away with this.”

But the company disputes the idea that there’s anything unfair about its use of AI to price fares, telling Fortune magazine, “Our fares are publicly filed and based solely on trip-related factors like advance purchase and cabin class, and we maintain strict safeguards to ensure compliance with federal law.”

Dynamic pricing is highly controversial and can lead to some intense backlash. When news broke back in early 2024 that Wendy’s was thinking about introducing surge pricing—making food items more expensive during certain times of the day—it backed off the plan almost immediately.

Will Delta face the same backlash? That seems likely, given the subsequent outrage you can see on social media. But that doesn’t mean Delta will be as responsive to the negative publicity. Delta makes a significant portion of its revenue from its partnership with American Express, meaning it’s less sensitive to people griping about the penny-pinching nightmare that is flying in the 21st century. Or, as the Atlantic put it in an article from 2023, airlines are just banks now. And banks don’t really care if you think they’re out to just make money without regard for their customers’ feelings.

Like
Love
Haha
3
Zoeken
Categorieën
Read More
Uncategorized
Zack Snyder Can’t Let 'Rebel Moon' Die
Remember Rebel Moon? Netflix’s two-part movie...
By Omphidian Sipes 2025-07-16 23:56:02 0 10K
Food
Greek Cheese Bread (Tiropita Bread)
Ingredients:3 cups all-purpose flour2 tsp baking powder1/2 tsp salt1/4 tsp black pepper1/2 tsp...
By Kai Tran 2025-03-15 02:19:50 0 17K
Food
Eggplant & Lentil Apricot Curry
Ingredients:For the Roasted Eggplant:2 medium eggplants1 tsp (5 mL) olive oil1 tsp (6 g) saltFor...
By Wivjaj Wivjaj 2024-10-10 01:36:16 0 22K
Uncategorized
Có 7 trường hợp nhà đất này bắt buộc phải công chứng, đó là?
Theo quy định mới nhất của Luật Đất đai 2024, sẽ có...
By ExpensiveTie9092 Vi 2025-07-29 22:43:05 0 8K
Uncategorized
Xoài Non gây sốt trên mạng với outfit gợi cảm, biệt danh cũ không còn phù hợp nữa.
Từng gắn liền với hình ảnh ngọt ngào, ngây thơ đúng chuẩn "hot girl tuổi teen", cái tên Xoài Non...
By Hester Fahey 2025-06-20 02:30:13 0 12K