Delta Air Lines has firmly rejected accusations of utilizing artificial intelligence to establish personalized flight prices, a contention that arose amidst scrutiny from U.S. lawmakers concerned about potential fare increases for consumers.

In a formal letter addressed to Democratic Senators Ruben Gallego, Mark Warner, and Richard Blumenthal, the Atlanta-based carrier underscored that its flight fares are exclusively determined by the inherent dynamics of the market and the intense competition within the airline industry.

The airline explicitly stated that it has never deployed, is not currently testing, nor does it plan to introduce any fare product designed to target customers with individualized pricing schemes based on their personal data, reinforcing that personal information plays no role in their AI pricing mechanisms.

While denying direct AI pricing, Delta confirmed its evaluation of an AI-based revenue management technology developed by Fetcherr, an AI pricing company. This tool is intended to support analysts by streamlining manual processes, accelerating market analysis, and improving the speed at which pricing adjustments can be implemented.

The ongoing pilot program with Fetcherr primarily focuses on leveraging travel technology to forecast demand for specific routes and flights. This involves aggregating purchasing data for particular flight paths and adapting swiftly to evolving market conditions, enhancing operational efficiency rather than dictating individual prices.

The senators’ initial concerns, voiced last week, stemmed from a belief that Delta might use AI to set individual prices, potentially leading to higher costs for travelers. Their apprehensions prompted the airline’s detailed response, clarifying its position on the contentious issue.

Adding to the discourse, the lawmakers cited a December comment from Delta President Glen Hauenstein, who reportedly stated that the carrier’s AI price-setting technology could predict the “amount people are willing to pay for the premium products related to the base fares,” as reported by Reuters, which fueled the congressional oversight into the matter.

This incident highlights broader discussions within the airline industry regarding the ethical implications and consumer impact of advanced travel technology and artificial intelligence as companies seek to optimize operations and revenue streams.