Delta’s Big AI Move: Changing the Way We Pay for Things
By Susan Gonzales on 07/28/2025 @ 06:05 AM
Delta’s Big AI Move: Changing the Way We Pay for Things
Imagine this: You book a flight, and the ticket price is tailored just for you—based on who you are and how you behave online. That’s not sci-fi. It’s happening right now.
Delta’s Big AI Move
Delta Air Lines is testing a futuristic pricing system powered by an AI called Fetcherr. So far, it sets prices for about 3% of domestic flights, and the airline plans to expand that to 20% by the end of 2025. Delta’s president calls this a “full reengineering” of how tickets are priced—as if each fare is custom-made for each passenger.
Analysts say early tests show up to a 9% revenue boost, meaning Delta may make more money—fast.
Why Some People Are Worried
Not everyone loves this idea. Three U.S. senators called it “predatory” and demanded answers from Delta. They’re concerned that the AI could guess your personal pain point—the highest price you might just accept—and charge you that.
Critics argue it could lead to unfair pricing, privacy issues, and erode trust in the airline. Delta insists it does not use deeply personal info—but lawmakers remain skeptical.
But Dynamic Pricing Isn’t New
From airlines to ride-share apps, companies have long changed prices dynamically based on demand, supply, competitor rates, and even weather. AI now turbocharges that ability—letting firms analyze huge amounts of data in real time.
These AI systems can:
- Predict when demand will spike
- Learn who’s most likely to buy—and how much they’re willing to pay
- Tailor offers accordingly almost instantly
Finding a Balance: Trust vs. Profit
Businesses know that while dynamic pricing can boost revenue, it can also scare customers away. The key is transparency:
- Clear communication: Let people know why prices change—like Uber’s surge alerts.
- Predictable rules: Keep the reasons understandable and consistent.
- Fairness measures: Examples include refunding customers if prices drop after purchase.
The Bigger Picture
Even though Delta is leading the charge by being open about AI pricing, many other airlines are quietly testing similar strategies. Despite concerns, travel experts like Scott Keyes argue that fierce competition in the airline industry may actually keep overall fares lower—especially for basic economy seats. AI may just optimize how and where airlines earn money, leaving base fares more affordable.
Final Thought
AI-driven dynamic pricing feels futuristic—but it’s already here. It has the potential to change how we pay for flights, groceries, event tickets, and more. As consumers, we’ll need clearer explanations and protections to trust these systems. Meanwhile, companies will need to use AI responsibly—balancing smarter pricing with fairness.
To learn more about the ongoing conversation that inspired this blog, check out this article from Fast Company.