Delta Wants 20% of Flights to Have AI-Powered Dynamic Pricing by the End of 2025

0
10كيلو بايت

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.

Edward H. Bastian, the CEO of Delta, explained the strategy on an investors call last week, noting that it was “optimizing revenue through [its] partnership with Fetcherr,” an Israeli tech company founded in 2019, and “leveraging AI-enhanced pricing solutions.”

Hauenstein said the company was in a “heavy testing phase” but that executives at the company “like what we see.”

What does that mean? If you ask critics like Sen. Ruben Gallego, a Democrat from Arizona, it means Delta isn’t being fair about the way it’s pricing seats.

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

But the company disputes the idea that there’s anything unfair about its use of AI to price fares, telling Fortune magazine, “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.”

Dynamic pricing is highly controversial and can lead to some intense backlash. When news broke back in early 2024 that Wendy’s was thinking about introducing surge pricing—making food items more expensive during certain times of the day—it backed off the plan almost immediately.

Will Delta face the same backlash? That seems likely, given the subsequent outrage you can see on social media. But that doesn’t mean Delta will be as responsive to the negative publicity. Delta makes a significant portion of its revenue from its partnership with American Express, meaning it’s less sensitive to people griping about the penny-pinching nightmare that is flying in the 21st century. Or, as the Atlantic put it in an article from 2023, airlines are just banks now. And banks don’t really care if you think they’re out to just make money without regard for their customers’ feelings.

Like
Love
Haha
3
البحث
الأقسام
إقرأ المزيد
Tech
At Last, We're Discovering New Methods to Expand Your Switch 2's Insufficient Storage Fourfold
If you’re like me, your hungry Switch 2’s belly is...
بواسطة NOthangg 2025-06-27 15:14:03 0 11كيلو بايت
News
Khi bạn bật điều hòa khi ngủ vào ban đêm, hãy nhớ không để ở mức 26 độ. Cảm ơn chuyên gia điều hòa đã nhắc nhở, tôi đã học được rất nhiều sau khi đọc bài này
Tuy nhiên, hậu quả của việc ở trong phòng máy lạnh...
بواسطة ShadowGinrai 2025-06-28 23:47:04 0 10كيلو بايت
Fitness
Cha mẹ càng kém năng lực thì càng thích làm bốn điều này ở nhà, vô tình hủy hoại tương lai của con cái mà không hề hay biết
Lời nói và hành động của cha mẹ giống như phông nền...
بواسطة americandarling 2025-06-16 23:05:07 0 6كيلو بايت
News
Kể từ nay, UBND cấp xã không được làm điều này, liên quan đến đất đai
UBND cấp xã sẽ không được yêu cầu người dân điều chỉnh...
بواسطة Luci65hot 2025-08-05 04:08:06 0 9كيلو بايت
News
Kể từ nay, có 5 khoản tiền người lao động được nhận khi nghỉ việc, biết để hưởng đủ
Việc nắm rõ các khoản này không chỉ giúp người lao...
بواسطة Ireyniymi 2025-08-11 10:29:07 0 8كيلو بايت