Flying has become surprisingly affordable these days, contrary to popular belief. Time magazine reports that when adjusted for inflation, airfares are 41% cheaper than they were a decade ago, with June 2025 marking the second-lowest month ever for inflation-adjusted ticket prices. However, Delta Air Lines is shaking things up with a new approach to pricing that could impact certain travelers. The airline is ramping up its use of AI-driven pricing, which has been in testing since late 2024, initially affecting about 1% of fares. By the end of 2025, Delta plans to expand this to 20%, joining other airlines in this tech-forward trend. This move has sparked criticism from politicians and consumer advocates, who worry about potential issues like discrimination, unfair pricing, and privacy concerns.
So, what does AI pricing mean for your airfare? According to Airline Geeks, Delta is optimistic about the change, seeing it as a way to boost profits. During a July 10 earnings call, Delta President Glen Hauenstein shared that the airline is collaborating with Israeli tech firm Fetcherr to implement these AI-enhanced pricing solutions. He mentioned that currently, about 3% of domestic flights use this model, with a goal to reach 20% by year-end. Hauenstein emphasized that the system is still in a testing phase, but the results so far are promising. However, not everyone is convinced. Consumer Watchdog, a nonprofit based in California, argues that this pricing model tends to favor wealthier customers by offering them lower fares, while those with lower incomes may end up paying more. This echoes findings from a 2012 Wall Street Journal investigation, which noted that areas with higher average incomes often received better deals.
For most travelers, especially those flying economy and less frequently, AI pricing could mean higher costs as the system determines the maximum price a customer is willing to pay. Meanwhile, wealthier passengers might enjoy discounts, possibly as an incentive for repeat business. While AI has the potential to revolutionize airfare pricing, it’s crucial to ensure that it doesn’t come at the expense of fairness and accessibility for all travelers. #AirfareTrends #AIinAviation #TravelSmart
Originally reported by Simple Flying Read More
