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U.S. Issues Warning to Airlines Over Potential Use of AI for Personalized Ticket Pricing

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U.S. Secretary of Transportation, Sean Duffy, was clear: the use of artificial intelligence (AI) to set personalized prices for airline tickets is a cause for concern, and if its application is confirmed, it will be subject to investigation.

During a statement on Tuesday, Duffy warned that any attempt to adjust fares based on consumer personal data—such as income or search history—would trigger an immediate response from authorities. “If any company attempts to use AI to set individualized prices for their seats, I guarantee we will investigate,” he stated.

Delta Denies Personalization but Confirms AI Integration

At the center of the debate is Delta Air Lines. The airline was singled out by Democratic senators—Ruben Gallego, Mark Warner, and Richard Blumenthal—who expressed concern over the possibility that Delta might use AI to tailor ticket prices to each consumer’s “pain point,” i.e., the maximum they would be willing to pay.

Delta responded directly to Congress, stating that it has not used nor will it use AI to set individualized fares. Duffy accepted this response “at face value” but made it clear that the issue remains under observation.

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However, the airline confirmed that, in partnership with the company Fetcherr, it plans to implement AI-based revenue management technology in 20% of its domestic network by the end of 2025. According to Fetcherr’s website, its pricing system is used by airlines such as Delta, WestJet, Virgin Atlantic, Viva, and Azul.

Criticism and Legislative Proposals

Robert Isom, CEO of American Airlines, also weighed in on the issue. He warned that applying AI to set fares could damage consumer trust, a critical asset for the airline industry.

Meanwhile, Democratic lawmakers Greg Casar and Rashida Tlaib introduced a bill that would explicitly prohibit the use of AI to set prices or wages based on the personal data of U.S. citizens. The text proposes a specific ban on practices such as raising the price of a flight after a user searches for tickets to attend a family funeral.

What’s Already Being Done?

Delta pointed out that the use of dynamic pricing in the industry is not new. For over thirty years, airfares have been adjusted based on factors such as overall demand, fuel prices, and competition. However, the company emphasized that this system does not consider passenger personal information to determine prices.

A Debate Taking Off

The discussion about the ethical and regulatory limits of AI use in commercial aviation is just beginning. While airlines explore new ways to optimize revenue, U.S. regulators promise strict oversight to ensure the technology is not used to the detriment of consumers.

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