Following Delta Air Lines announcement of a new AI-driven dynamic pricing initiative, concerns have been raised about potential privacy violations. In response, Delta published a letter claiming that the AI system would not use personal data to set individualised fares.
“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,” said the airline.
The pilot project enables AI to influence pricing for about 1% of Delta’s flights on its total network and 3% of flights on its domestic network. The airline aims to increase this AI influence to about 20% of its total network by the end of the year.
“The Al pricing functionality recommends pricing adjustments in both directions to enhance market competitiveness and drive sales, benefiting both our customers and our business,” stated Delta.
“Fares are publicly filed through the Airline Tariff Publishing Company multiple times daily and contain objective, publicly available fare rules that ensure all customers have access to the same fares and offers based on objective criteria provided by the customer, such as origin and destination, advance purchase, length of stay, refundability, and travel experience selected.”
