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Delta Air Lines defends the use of AI in air lines airfare pricing strategy


Delta Air lines fired back among MPs this week, which defends its use of artificial intelligence in pricing.

In a letter to three MPs reviewed by TPG, the Atlanta-based carrier again stressed that the customer is not tapping in data or targeting individual consumers as part of a new AI-Assisted pricing program.

Delta specifically raised controversial concerns raised by three Democratic Senator, which last month, accused Airline of “personal” and “monitoring” pricing.

“This is wrong and the perception, unfortunately, has created confusion and misinformation in the public discourse,” the Chief External Affairs officer Peter Clarke wrote in a letter on Thursday. “In addition, we have zero tolerance for discriminatory or hunter pricing and have a complete compliance of laws applicable in privacy, pricing and advertising.”

Delta first revealed that it was using AI with a final decline on a small portion of domestic booking, assisting its human revenue management workers for technology “super analysts”.

Until last month, carrier AI was integrated at about 3% of its domestic routes Through a partnership with the tech firm Facher, the chairman of the delta, Glennstin, said, “The carrier expected to extend its AI use to about 20% routes by the end of 2025.”

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That revelation examined the C-suits of the top contestants from Capital Hill.

Senator Mark Warner (a Democrat from Virginia), Ruben Galgo (A Democrat from Arizona) and Richard Blutenal (a Democrat from Connecticut) gave a letter to the airline last month, seeking more clarity about the company’s AI pricing strategy.

Again, last week, American Airlines CEO Robert Isom stated that the use of AI of Delta was “not appropriate” and said that the American did not plan to use AI in its rent-value determination practices.

Responding to this week, Delta said that its new AI program was only a “decision-supporting equipment” which demands forecast and recommends rent based on many similar commercial ideas that have determined the fare for decades, from booking patterns to competition and fuel prices.

In some cases, delta’s AI tool recommends cheap fare – possibly when seats do not sell.

Delta stated that it is integrating AI in other parts of its business as well, including customer service and it involves predicting that when an aircraft or aircraft part may require maintenance.

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