Delta Air Lines Vows Not to Use AI for Personalized Pricing Amid Lawmaker Scrutiny

Delta Air Lines has assured U.S. lawmakers that it will not use artificial intelligence to set personalized ticket prices based on passengers’ personal data, following concerns from senators and the public over potential discriminatory pricing practices.

In a letter seen by Reuters, Delta clarified that it “has never used, tested, or plans to implement” individualized pricing models that leverage personal consumer data. The airline emphasized that its fare structures rely on broader market factors—such as demand, fuel costs, and competition—rather than personal profiling.

The statement came after Democratic Senators Ruben Gallego, Mark Warner, and Richard Blumenthal raised alarms last week, warning that AI-driven personalized pricing could exploit consumers by pushing fares to their maximum “pain point.” While Delta denied such practices, lawmakers pressed for more transparency on how the airline uses data in pricing decisions.

Senator Gallego welcomed Delta’s commitment but noted discrepancies between the airline’s public statements and its investor discussions. In December, Delta President Glen Hauenstein had suggested AI could help optimize fares by predicting “the amount people are willing to pay” for premium services—a remark that fueled skepticism.

The debate coincides with growing scrutiny of AI-powered pricing across industries. Last week, American Airlines CEO Robert Isom rejected the idea, stating that using AI to manipulate ticket prices would erode consumer trust. Meanwhile, Democratic Reps. Greg Casar and Rashida Tlaib introduced a bill to ban AI-driven personalized pricing, citing concerns over “algorithmic discrimination,” such as hiking fares for users searching for family obituaries.

A January Federal Trade Commission report highlighted how retailers often use personal data—from browsing habits to demographics—to tailor prices, raising ethical concerns. Delta, however, maintains that its AI initiatives focus only on analyzing aggregated market trends to adjust fares efficiently.

The airline has partnered with AI pricing firm Fetcherr to enhance revenue management but insists the technology will not target individuals. As regulators and lawmakers push for stricter oversight, Delta’s stance could set a precedent for how airlines balance AI innovation with fair pricing practices.