Delta Scraps A Big Change

In an era where the use of AI (artificial intelligence) is on the rise, Delta has backtracked on its stance of using AI to help with ticket pricing.

The U.S. carrier in early July entered headlines for all the wrong reasons, stating that AI would price 20% of its airfares by the end of the 2025 calendar year.

This announced move was building upon the 1% of inventory that AI was already pricing, and as a result, was looking to see greater adoption of this resource across its business.

During the Investor Day, the airline’s President, Glen Hauenstein, said that a price will be available on an aeroplane. At that time, it’s available to customers who are individuals, with AI, this becomes the analyst and works 24/7, trying to stimulate real-time price points.

Described as a multi-year and multi-step process by the president, AI was to be utilised in a controlled environment to revolutionise pricing in the future and gain insight into consumer behaviour, presenting them with more relevant information at the right time.

As expected, the move from Delta was met with a significant amount of backlash, some comments across forums questioning the purpose of AI, considering the already extensive algorithms in place, which are meant to play a role in determining airfares.

Others pointed towards the airline’s desire to be an AI-driven company, adopting this technology like many other businesses to try and get a leap ahead of its competitors, one user saying, “hey, AI is hot. What are we doing with AI so we can say we are an AI company?”

Delta Scraps The Move

Now, Delta has all but scrapped, for the moment at least, plans to use AI for its ticket prices, a decision coming nearly a month after the airline’s president seemed quite proud of the decision.

The carrier has seen much scrutiny not just from the public but Congress and even competitor American Airlines, which outright blasted Delta’s decision to confirm such an initiative.

In a letter, the airline said that its pricing strategy is governed by market demands and the competitive landscape in which the aviation industry finds itself.

As a result, there’s no farte product used, or anything the airlines plans to use that would target customers with individualised prices based on their data.

For the moment, the airline said it is not utilising AI for ticket prices, but is still exploring what AI can do for other parts of its business, the technology set to be helpful for elements of the company.

Additionally, the carrier plans on using AI to help with specific routes and flights with demand, using the technology to complement analysts within the business and give the company a better chance at building the best possible network, alongside other areas.

Public response has been mixed, with many pointing to the airline as “lying” and treating its customer base like fools.