Delta Airlines is testing an AI fare system to revise its airfare setting process. The Atlanta-based airline intends to implement this technology on 20% of its domestic flights by the end of 2025. The pilot will operate for 18 to 24 months. Glen Hauenstein, president of Delta, said the system aims to give each passenger more personalized and relevant options.
Additionally, this action places Delta Airlines among the first to openly use AI in a field with such high stakes. However, the company’s previous AI tests used only 1% of ticket sales. This change indicates a much more significant change.
How Will Delta’s AI Fare System Impact You
Delta’s AI fare system is made to analyze demand, time, and customer behavior in order to determine dynamic ticket prices. Instead of using fixed prices, the AI uses real-time simulations to estimate what a person is likely to pay. Furthermore, this allows pricing to consider not only market conditions but also user preferences and purchasing trends.
Glen Hauenstein compares the system to an endless “super analyst.” “It’s a full re-engineering of how we price,” he said. Additionally, he clarified that the objective is to display the appropriate fare to the appropriate traveler at the appropriate time. The AI adjusts instantly, performing tasks that human analysts usually take hours or days to complete.
Delta will closely monitor the effects on customer satisfaction and profitability. The initial outcomes have been positive. “We like what we see, and we’re continuing to roll it out,” said Hauenstein. Delta maintains that the customer comes first, despite concerns about fairness.
AI Fare System May Become the New Standard
When Delta used AI to price 1% of its tickets in 2024, the shift began. The airline was able to expand its routes due to its success. The AI fare system will now be used on one out of every five domestic flights. Furthermore, providing intelligent, customized experiences is more important than price alone.
If everything works out, Delta might roll out this system across the entire organization. The airline may soon be followed by other carriers as it continues to push for more intelligent ticket pricing. Additionally, this may signal a major shift in aviation, where algorithms take the place of analysts in important choices.
Will the AI Fare System Truly Benefit Travelers?
Delta claims that the purpose of this technology is to help, not hurt, passengers. By providing fare customization, the airline hopes to improve travel experience, flexibility, and convenience. Additionally, customers might see prices that are tailored to their preferences or reduced when demand is low.
Delta Airlines is still dedicated to innovation. Following its seventh consecutive year as the top U.S. airline, this new action may establish yet another industry standard. However, it will take time and data to determine whether AI can handle ticket pricing on its own.
About The Author
