DELTA RESPONDS TO U.S. LAWMAKER CONCERNS ABOUT AI PRICING
September 24, 2025
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On August 7, 2025, Delta responded to U.S. lawmakers who alleged that Delta was planning to use artificial intelligence (“AI”) when setting individualized fares for air travel. Delta answered concerns raised by U.S. Senators Gallego, Blumenthal, and Warner who had sent the airline’s CEO an inquiry in July 2025, worrying that airlines will use “surveillance pricing” to tailor prices to an individual passenger’s willingness to pay. Federal regulators at the Federal Trade Commission and the U.S. Department of Justice (“DOJ”) have been investigating other industries which employ AI algorithms when setting prices. U.S. lawmakers worry that the airline industry will use AI to individualize prices based upon a passenger’s personal information to which Delta confirmed that it will not use a passenger’s personal data to individualize prices and that ticket prices are dictated by market forces, not personal data. Nevertheless, consumer advocates continue to encourage U.S. regulators to examine airline pricing models in much the same way that Uber and Lyft have faced scrutiny for purported “surge pricing” on ridesharing platforms. Transportation Secretary Duffy recently warned that DOT will investigate any airline using AI to set seat pricing. Carriers seeking to implement AI algorithms into their pricing system should follow regulatory activity in this area and ensure compliance with DOT fare disclosure regulations.
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