Your next Delta Air Lines fare might be priced by AI: Here's what that means
Delta Air Lines is taking dynamic pricing to the next level. This week, the Atlanta-based carrier said it hopes to use artificial intelligence to influence pricing on about a fifth of its domestic flights by the end of 2025.
That would represent a sharp increase in the airline’s use of AI in dictating the price passengers pay to fly.
Last fall, Delta executives first revealed the company had begun using AI on a small sliver of its bookings; at the time, AI tools were only involved with about 1% of the airline's network, leaders shared on Delta's November 2024 investor day presentation.
Related: Best airlines report 2025: Delta tops TPG's rankings for 7th straight year
AI is now behind pricing decisions on around 3% of Delta’s domestic network, President Glen Hauenstein shared Thursday on the company’s second-quarter earnings call.
“Our goal is to have about 20% by the end of the year,” Hauenstein told analysts Thursday, describing the initiative as part of a “testing phase” with AI travel firm Fetcherr.
“We like what we see. We like it a lot, and we’re continuing to roll it out,” Hauenstein added.
Major tech investments
Airlines have invested vast sums of money (billions of dollars, to be sure) in recent years upgrading both passenger-facing technology like booking channels and mobile apps.
Those investments have led to new products like better bag-tracking features that integrate with Apple AirTags, gate technology to stop line-cutters and better tools to help passengers rebook when flights are delayed or canceled.
Read more: The best times to book cheap flights in 2025
Carriers have also upgraded their behind-the-scenes tech that powers the airline. And that includes their revenue management systems, which (among other things) are integral in setting fares and changing prices, constantly weighing factors like supply and demand for a particular flight.
The notion that carriers had become more sophisticated in their pricing tactics was front and center this spring, amid revelations that a handful of U.S. airlines — Delta among them — were occasionally charging passengers flying alone more than customers flying in groups of two or more. (A TPG report found that particular pricing tactic wasn’t widespread, but does happen.)
It's not clear whether AI was, in any way, involved with those particular pricing strategies, but industry experts spoke to increasing sophistication on the airlines' part: “With more advanced technology and with more passenger history, I think airlines are becoming better able at estimating passengers’ willingness to pay,” Kerry Tan, an expert in airline revenue management at Loyola University in Maryland, told me this spring.
On Delta's investor day presentation last fall, Hauenstein said (PDF link) the use of AI would lead to a "full reengineering of how we price and how we will be pricing in the future."
Related: Delta predicts Sky Club overcrowding will be 'solved' within next 2 years (mostly)
Bottom line
Incorporating AI into revenue management will presumably make airlines’ dynamic pricing tactics all the more robust — especially if Delta hits its goal of 20% usage by the end of the year.
“We’re continuing to roll it out, but we’re going to continue to take our time and make sure the rollout is successful as opposed to trying to rush it,” Hauenstein said Thursday.
A January survey from consulting giant KPMG found two-thirds of business leaders polled expected AI to fundamentally transform their business over the next two years.
Clearly, that includes the travel sector.
Related reading:
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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
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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. |
| 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. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
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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.