In 2022, I decided to join Delta’s SkyMiles loyalty program.
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It’s the first and only airline loyalty program that I’ve ever joined. The move made sense because, after immigrating to Spain years ago, I often fly Delta when traveling to and from the United States. Those longer transatlantic flights are pricier, letting me earn miles that could, one day, cover a one-way trip.
I haven’t thought twice about the decision, since I’ve had uniformly good experiences flying Delta. Last year, they even managed to get a lost bag to my final destination without a single request on my part. That’s a big deal, especially considering my bag was misplaced in Atlanta, one of the country’s largest airports.
Then, last summer, Delta Airlines made headlines. According to publications like Forbes and Fortune, the company was planning to launch AI-driven pricing models. While airlines have often used real-time data to boost or lower airfare (aka dynamic pricing or surge pricing), Delta’s alleged new model would be different.
It would trawl personal data from its users to create individualized pricing based on personal browsing data. In short, the airline would be using a new algorithm to maximize profits by pushing your airfare as high as possible based on your spending history.
Was it true? And where does Delta stand when it comes to individualized pricing? Here’s what we know.
Inside the new pricing model used by Delta
On July 16, 2025, Fortune outlined a new long-term strategy that Delta would undertake to maximize profits using AI. The goal was to move toward a system that would create individualized prices for each customer. The publication said that, by the end of 2025, Delta would use AI to sell 20% of its total tickets.
The announcement came from Delta’s president, Glen Hauenstein, who was interviewed the week before. At the time, Hauenstein said that the goal was to do away with static pricing over a multi-year shift. According to Fortune, Delta is being very open about its AI-driven approach—whereas other major airlines, like United and American, are keeping more tight-lipped.
The next day, Forbes published an article digging into the real-world consequences of Delta’s new plans. While the idea of maximizing profits by creating individual prices sounds routine for multi-billion-dollar companies, the risks are psychological. According to Forbes, the new model involves ‘asymmetric information’, which an AI model can use at hyper speed.
The question is… how does the model obtain private information on its users? And, according to the principles of behavioral economics, what happens to customers when they feel violated?
According to Forbes, “When an airline sets prices based on supply and demand, customers understand the logic. When an algorithm analyzes your personal data to extract maximum payment, it feels predatory.”
Even some politicians got involved. According to US Senator Ruben Gallego (AZ), the airline was using ‘predatory pricing’. He and two other senators penned an official letter requesting more information from the airline.
Here’s what Delta says about its latest pricing model
When Hauenstein laid out plans to pivot toward an AI-powered individual pricing model last summer, he wasn’t announcing the launch of a new program. He was announcing plans that will unfold over the coming years.
On August 7, 2025, Delta released a statement to respond to ‘misinformation around AI pricing’. The statement was addressed to three senators, including Gallego, and pointed out that its AI pricing model doesn’t require users to sign in to shop for airfare. It goes on, “There is no fare product Delta has ever used, is testing or plans to use that targets customers with individualized prices based on personal data.”
Fast forward to 2026—where does Delta stand on its AI pricing models?
Two weeks ago, Delta’s CEO Ed Bastian said he had plans to boost profits by 50% by cutting jobs that can be performed by AI and raising fares. According to Yahoo, the latest model used by Delta and its data-crunched partner Fetcherr is to figure out what passengers are willing to pay, then fine-tune that amount. In short, it’s still dynamic pricing—just made hyper-fast thanks to advanced AI algorithms.
