Delta Is Expanding Its AI Use to Determine Individualized Ticket Pricing

Delta is ramping up its AI-driven pricing strategy.

According to Fortune magazine, the Atlanta-based airline aims to boost its artificial intelligence tools to set personalized airfare. Delta president Glen Hauenstein confirmed the move during the company’s second-quarter earnings call (July 10), saying about 3% of Delta’s ticket pricing is determined by Fetcherr, an Israeli company specializing in “AI-enhanced pricing solutions.”

Hauenstein reportedly told investors the Fetcherr-led pilot program has yielded “amazingly favorable” results since its launch in 2024. Delta is now looking to drastically expand its AI-driven pricing model within the next five months.

“Today, we’re about 3% of domestic,” Hauenstein said. “Our goal is to have about 20% by the end of the year. And that’s a goal. I mean, we can report back on what the actual numbers are, but you have to train these models as you might expect and you have to give it multiple opportunities to provide different results.”

If the AI tool continues to boost Delta’s profit margins, the airline will continue a multi-year rollout with the goal of eliminating static pricing altogether. This means Delta customers would no longer see universal ticket pricing and would instead receive pricing offers based on demand predictions.

“We’re going to take our time and make sure that the rollout is successful as opposed to trying to rush it and risk that there are unwanted answers in there,” Hauenstein said.

Experts have pointed out that dynamic pricing is not only legal, but it’s becoming increasingly common within the transportation industry. Federal law prohibits companies from charging different rates based on factors like race, sex, or ethnicity. A spokesperson for Delta told Fortune the airline “has zero tolerance for discrimination. 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.”

It’s unclear what those “safeguards” were.

“Delta’s CEO just got caught bragging about using AI to find your pain point—meaning they’ll squeeze you for every penny,” Arizona Sen. Ruben 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.”