'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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