U.S. Senator Does Not Hold Back on Delta's 'Predatory' Move

Last week, Delta Air Lines turned some heads when company president Glen Hauenstein revealed that the company was planning to expand its use of AI in setting prices. However, one particular U.S. lawmaker is not at all happy with the move.

During an earnings call last week, Hauenstein told reporters that about 3 percent of the airline's domestic ticket prices are already set using AI, and that the company hopes to expand that to 20 percent by the end of 2025. He also boasted about Delta's partnership with Fetcherr, a tech company that claims to be able to "set the perfect price every time" using AI.

Hauenstein described the AI pricing as a "super analyst" that is "working 24/7, 24 hours a day, 7 days a week" and is not limited like a human analyst.

While Delta is clearly excited about the move, three lawmakers have already expressed concern about the airline's plan, sending a letter demanding answers about the plan to expand its use of AI in setting fares. One of those lawmakers took it a step further.

In a social media post, Sen. Ruben Gallego of Arizona did not hold back his true thoughts on the airline's move, calling the pricing "predatory" and vowing not to allow the airline to get away with such a move. 

"Delta’s CEO just got caught bragging about using AI to find your pain point — meaning they’ll squeeze you for every penny," Gallego wrote in a post on X this week. "This isn’t fair pricing or competitive pricing. It’s predatory pricing. 

"I won’t let them get away with this," he added.

American Airlines CEO Robert Isom has also spoken out against Delta's plan, calling it a "bait and switch" and insisting that American Airlines would never use a similar move.

It's worth noting that Delta denied any plans to use personal information to target customers with individualized offers.

"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," the airline wrote in a statement this week. "A variety of market forces drive the dynamic pricing model that's been used in the global industry for decades, with new tech simply streamlining this process. Delta always complies with regulations around pricing and disclosures."

It will certainly be interesting to see how Delta will move forward with the plan, especially considering the outrage it has sparked.