'Not appropriate': American Airlines CEO slams competitors using AI on flight pricing
American Airlines’ top executive had harsh words about competitors using artificial intelligence on airfare pricing.
“I don’t think it’s appropriate,” AA CEO Robert Isom said Thursday, in what was an unusually pointed remark.
The comment seemed to be aimed at Delta Air Lines, which earlier this month revealed it’s using AI to price about 3% of its domestic network through a partnership with tech firm Fetcherr.
On July 10, Delta said it hoped to have AI involved in pricing as much as 20% of its domestic network by the end of the year, while noting AI use in its revenue management practices was still in the experimental phase.
It begged the question: Are other airlines also using AI with pricing tactics?
Not American, it seems.
“I quite frankly think that some of the things I’ve heard are just not good,” Isom said while speaking Thursday on American’s second-quarter earnings call.
"Consumers need to know that they can trust American, ok? This is not about bait and switch. This is not about tricking,” Isom added. “And certainly, from American, it’s not something we will do.”
Last fall, Delta President Glen Hauenstein likened its use of AI to a “super-analyst” working around the clock on a small portion of its network — then about 1% — which has since increased.
“We like what we see. We like it a lot, and we're continuing to roll it out," Hauenstein told analysts earlier this month.
But the move drew scrutiny from lawmakers this week. A group of three Democratic senators sent a letter to Delta CEO Ed Bastian expressing concern about its AI expansion and requesting more information about its pricing tactics by early August.
In a statement to TPG Thursday, a Delta spokesperson said: "A variety of market forces drive the dynamic pricing model that’s been used in the global industry for decades, with new tech simply streamlining this process."
The carrier further noted it complies with all regulations around pricing and disclosure, and said it has never used or tested any fare product that targets customers with "individualized offers based on personal information or otherwise."
How American Airlines is using AI
American is using AI, though, Isom noted Thursday — just not on pricing. The Fort Worth-based carrier has focused its use of the technology on operational functions, he explained, including programs meant to get operations back on track after bad weather and other disruptions.
“For our customers, it’s going to improve their customer experience,” Isom said. “We’re going to be able to serve them in a way that, when they do run into difficulties, that they can recover faster.”
Southwest Airlines on Thursday noted it has been using machine learning to predict the number of bags it will have to gate check. Alaska Airlines, for its part, said it's using AI in safety and operational planning.
“We’re looking at initiatives that really put the guest experience at the center of it all," Alaska Air Group CEO Ben Minicucci said on the Seattle-based carrier's earnings call Thursday.
Bottom line
For what it's worth, airlines have — collectively — long relied on a combination of algorithms driven by factors like supply and demand, along with human analysts, to set fares. Also, dynamic pricing has been around for years, and it can be a factor in why a customer might find a $250 fare one day, only to come back hours later to see that it spiked ... or dropped.
To be fair, American is not immune to its own clever pricing tactics that have drawn the ire of consumer advocates. It was among the carriers found to be charging solo travelers more than customers traveling with one or more companions.
American has also solidly trailed Delta (and United) in profitability in recent years, including during the critical second quarter of 2025, per financial metrics the airline released Thursday.
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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. |
| 4X | 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. |
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You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
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Why We Chose It
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.