AI Spyware Rumour Sparks Outrage Against This US Airline

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ATLANTA— Delta Air Lines (DL) has addressed the increasing online rumours regarding its AI-based pricing system by confirming that it will not utilise personal information to establish individualised ticket prices.

The recent update on the AI-powered system, presently applied to approximately 3% of domestic routes from Hartsfield–Jackson Atlanta International Airport (ATL), prompted a backlash.

The new AI system’s coverage across Delta’s network is expected to significantly expand by the end of 2025.

AI Spyware Rumour Sparks Outrage Against Delta

An AI spyware rumour sparks outrage against Delta, both from customers and industry experts. The airline faced significant criticism for allegations that its AI-driven ticketing system could inflate airfares by using customer data on income or other personal traits.

The US airline has categorically denied these allegations, emphasising that the technology is entirely dependent on market-based factors rather than individual characteristics.

Delta’s President Glen Hauenstein stated that the AI system is intended to complement conventional dynamic pricing strategies, rather than unfairly personalise fares.

Currently, it has a minimal impact on ticket prices on domestic routes. However, Delta intends to increase this to 20% of all domestic pricing by the end of 2025, PYOK reported.

Dynamic Pricing in the Airline Industry

Dynamic pricing in the airline industry is an established technique. It entails the adjustment of fares in response to real-time market conditions, including demand, seat availability, time to departure, competitive pressures, and special events.

For decades, airlines globally have implemented this model to optimise their revenue and load factor.

Historically, dynamic pricing mandated substantial human input and rule-based automation. Delta aims to optimise this process by utilising AI to make pricing decisions that are more precise, responsive to shifting conditions, and expeditious.

The AI system optimises pricing across fare classes, also referred to as “buckets”. It can analyse an array of data points without relying on personal identifiers.

Delta Addresses Customer Concerns Over Data Mining

Rumours that the AI software might mine customer data to establish personalised fares based on a traveller’s income or browsing history sparked concerns. Delta has explicitly refuted this notion, stating that its system does not access or analyse personal data to determine ticket prices.

The airline confirmed in a statement that it is not testing any fare structures based on individualised customer data. Additionally, Delta has pledged to adhere to all regulations regarding pricing and disclosures.

The carrier additionally noted that market dynamics, rather than personal data, are the sole factors driving ticket prices.

Airlines Scoping AI Pricing Models

Delta’s rationale for employing AI is to optimise revenue. When implemented across a vast network such as Delta’s, even minor price adjustments can generate substantial revenue increases.

Aiming to eliminate manual inefficiencies and minimise wasted revenue opportunities, AI enables faster pricing responses to fluctuations in supply and demand.

A price increase of a few dollars on a high-volume route, for instance, can result in substantial returns over time for an airline.

AI-driven systems guarantee that fares remain in accordance with market realities, almost in real-time, by eliminating delays induced by manual processes.

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