The next time you book a flight with Delta Air Lines, artificial intelligence could play a role in determining the price you pay.
The Atlanta-based carrier has shown that it will increase AI use in its ticket pricing model with the goal of impacting 20% of domestic flights by the end of 2025.
Delta President Glenn Hauenstein said on July 10, the airline was using AI to price around 3% of flights on the company's second quarter revenue call.
“We like what we see. We love it and we love it and continue to roll it out,” he added.
On the company's investor day last November, Hauenstein showed that airlines are supporting the dynamic pricing model and working to eliminate static pricing entirely.
Delta is partnering with Israel-based AI travel agency Fetcher to develop an AI flight pricing strategy. Fetchel also counts Westjet, Virgin Atlantic, Azur and Bever Arrobus among his clients.
According to Points Guy, airlines have deployed AI for numerous operational uses and products in recent years to improve enhanced bag tracking capabilities that integrate with Apple Airtags, gate technology to prevent line cutters, and tools that help passengers rebook when flights are delayed or canceled.
Airlines are also equipped to upgrade their revenue management systems (a key tool for determining flight pricing) and to more accurately assess factors such as supply and demand for a particular flight.
When combined with AI, these revenue management systems will better judge how to extract even more money from the public in flight, increasing profit margins for the airline.
