American Airlines says AI could help with fares — but only to save time
American Airlines’ top executive had strong words this summer about a competitor using artificial intelligence to help set flight prices. Now, the airline is looking at ways to use AI itself — but said it's just hoping to save time, not let AI bots dictate the price customers pay.
Speaking Thursday at an industry conference, Steve Johnson, American's vice chair and chief strategy officer, rattled off several ways the airline is thinking about using AI. One has to do with the fares customers see when they go to book a flight.
“We file an uncountable number of fares, three times a day, all of which we have to make competitive in a super dynamic environment. AI’s going to help us do that,” Johnson said at the Morgan Stanley Laguna Conference in California.
Those comments came less than two months after American CEO Robert Isom appeared to sharply criticize Delta Air Lines for its AI tactics.
In July, the Atlanta-based carrier told investors it had begun using AI to help with pricing about 3% of its domestic flights.
There was swift backlash, both from lawmakers, who demanded to know whether Delta was using personal data to target consumers with tailored prices (which Delta later denied), and from Isom himself.
“I don’t think it’s appropriate,” Isom said on American’s July 24 earnings call. "This is not about bait and switch. This is not about tricking. And certainly, from American, it's not something we will do."
Yet, American has since acknowledged it's exploring AI tools to help with its revenue management — the behind-the-scenes systems that help airlines decide how much to charge for tickets and how to fill planes profitably.
American tells TPG that any AI tools it might consider for future use are about saving time, and helping the carrier automate the filing of millions of fares each day across its network.
The airline maintained it would never personalize fares based on an individual customer’s data, consistent with Isom's comments in July.
That explanation satisfied longtime industry analyst Henry Harteveldt, who has previously raised concerns about airlines’ use of AI with fares.
“What AI will do is allow airlines to be more responsive to market changes and be more competitive as a result," said Harteveldt, president of Atmosphere Research Group. “The way I interpret this is that American is going to use AI to, frankly, be more competitive with other airlines, especially airlines that may be charging less."
To be clear, Delta — despite lawmaker scrutiny — has also said that it’s only using AI tools to aid in its own airfare decision-making based on publicly available data and industry dynamics. As part of its AI pilot program, Delta is partnering with third-party Israeli tech firm Fetcherr.
American, for its part, is also using or exploring AI in other areas. Johnson last week said the carrier sees AI tech as a way to better help customers rebook after their flight is delayed or canceled. The carrier is already using generative tools to help it get operations back on track when bad weather or other major disruptions hit.
“It’s a business that is enormously complicated,” Johnson said Thursday. “And the ability to have automation that can, in effect, produce answers more comprehensively and faster is always going to be valuable for us.”
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- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
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| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.