United States Sends Strong Warning to Major Airlines
Earlier this week several reports emerged suggesting Delta Air Lines planned to use AI to dynamically set prices for travelers based on their data.
Earlier in the year, the airline said it plans to deploy AI-based revenue management technology across 20 percent of its domestic network by the end of 2025 in partnership with Fetcherr, an AI pricing company. Delta Air Lines currently uses the platform for 3 percent of its domestic flights.
"We like what we see, we like it a lot, and we're continuing to roll it out," Delta's president said during a recent investor call.
Sean Duffy's Warning for Major Airlines
The reports caused quite a firestorm from those in the travel sector and received a blunt response from U.S. Transportation Secretary Sean Duffy. When asked about the potential use of AI to set prices for airline tickets, Duffy issued a bold warning to major airlines.
"To try to individualize pricing on seats based on how much you make or don't make or who you are, I can guarantee you that we will investigate if anyone does that," Duffy said. "We would engage very strongly if any company tries to use AI to individually price their seating."
Delta's Initial Response to the Controversy
“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,” the company said, via Reuters.
“Furthermore, we have zero tolerance for discriminatory or predatory pricing and fully comply with applicable laws in privacy, pricing and advertising. Our Al-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.”
United States Sends Strong Warning to Major Airlines
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