November 6, 2025
If airlines were caught using AI to gauge prices, Department of Transportation Secretary Sean Duffy said the agency would investigate.
A group of two-dozen Democratic members of Congress is getting to the bottom of Delta Air Lines’ use of generative A.I. to set ticket prices, raising consumer privacy concerns in a letter to CEO Ed Bastian, Reuters reports.
In a letter dated Nov. 5, lawmakers, including Reps. Jesus “Chuy” Garcia, (IL) Jerrold Nadler, Alexandria Ocasio-Cortez and Dan Goldman (NY) asked Delta to disclose if its decision to use AI is to boost prices through “individualized, surveillance-based price discrimination.”
First raising the issue in July, lawmakers feel that airline’s use of AI could expose personal data or consumers’ internet usage. For example, if a potential flyer visits a resort website, the airline could identify when people want to travel most, leading to higher ticket prices.
The Democratic group is stepping in as they feel the airline didn’t properly address their initial concern. And with the government shutdown plaguing the airline industry, lawmakers feel consumers deserve answers.
“At a time when Americans are struggling to afford necessities, the airline industry is already highly concentrated, and generative AI is being deployed throughout the economy with limited transparency. This move could drive up prices for consumers and result in individualized, surveillance-based price discrimination,” the letter read, according to a press release from Garcia.
“And while Delta claims it has ‘strict safeguards to ensure compliance with federal law, it has not explained what those safeguards are, provided any meaningful transparency into its agreement with Fetcherr or the data that is being used to train the generative AI-powered algorithms, or otherwise provided evidence that it is not moving towards surveillance pricing.”
In response, the airline said “there is no fare product Delta has ever used, is testing or plans to use that targets customers with individualized offers based on personal information or otherwise.” But in early 2025, the airline announced plans to adopt a AI-based revenue management technology for 20% of its domestic network by the end of the year by working with AI pricing company Fetcherr.
Other airlines have announced plans for AI usage, but not for pricing. Luxury airline Emirates said it is using the software to predict bumpy turbulence on flights, as experts claim that climate change is increasing the likelihood of severe turbulence.
Democratic lawmakers Greg Casar and Rashida Tlaib, who also signed the letter, introduced legislation that would ban companies from using AI to set prices based on the personal data of American consumers—specifically targeting the airline industry. The letter highlighted how Delta President Glen Hauenstein previously stated the airline would use generative AI-powered pricing to guarantee airfares are tailored to “that flight, on that time, to you, the individual.”
If airlines were caught using AI to gauge prices, Department of Transportation (DOT) Secretary Sean Duffy said the agency would issue an investigation. “We would engage very strongly if any company tries to use AI to price their seating individually,” Duffy said.
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