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What you pay for a Delta Air Lines ticket may soon depend less on timing and more on what an algorithm thinks you’re willing to spend. About 3% of Delta’s domestic ticket prices are now determined by artificial intelligence,
Delta Air Lines is expanding AI-driven dynamic pricing to set custom flight costs for each traveler, raising privacy concerns.
Delta Air Lines is advancing its use of artificial intelligence to determine individual ticket prices, a move that could fundamentally transform how passengers pay for flights.
Prices are based on Delta’s internal data, such as historical bookings, as well as external variables like weather and market trends.
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Delta Air Lines, based in Atlanta, agreed to pay $8.1 million to settle claims related to a payroll program started during the COVID-19 pandemic.
Delta’s personalized AI pricing tech is provided by travel firm Fetcherr, which also partners with Virgin Atlantic, Azul, WestJet, and VivaAerobus. In Delta’s case, the AI will act as a “super analyst” that operates 24/7 to determine custom ticket prices that should be offered to individual customers in real-time, per specific flights and times.
The U.S. Transportation Department (DOT) escalated a long-running dispute with Mexico over alleged violations of the countries’ 2015 open skies agreement, threatening to restrict Mexican airlines' access to the U.S. and end the Aeromexico-Delta Air Lines transborder joint venture (JV).
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.
Last fall, Delta said it planned to use AI technology to price 1% of its tickets at whatever a customer was willing to pay. Now, reportedly, the airline is hoping to utilize AI to handle its ticket pricing on 20% of its domestic flights by the end of the year, according to The Points Guy.
A Delta Air Lines flight made an emergency landing at Los Angeles International Airport after one of its engines caught fire Friday, July 18.