Delta Air Lines is advancing its use of artificial intelligence to determine individual ticket prices, a move that could fundamentally transform how passengers pay for flights.

What you pay for a Delta Air Lines ticket may soon depend less on timing and more on what an algorithm thinks you’re willing to spend. About 3% of Delta’s domestic ticket prices are now determined by artificial intelligence,

Delta Air Lines is revolutionizing how it prices tickets by using artificial intelligence to pinpoint the maximum amount each traveler is willing to pay. According to The Verge, the airline, which tested this technology on a small scale last year,

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Prices are based on Delta’s internal data, such as historical bookings, as well as external variables like weather and market trends.

Last year, Delta Air Lines announced it was testing out dynamic pricing on some flights using tools built by the tech company Fetcherr. And while the test was initially limited, executives from the company announced that 3% of flights now use AI pricing, and they hope to sell 20% of all tickets using a dynamic price by the end of the year.

Delta’s personalized AI pricing tech is provided by travel firm Fetcherr, which also partners with Virgin Atlantic, Azul, WestJet, and VivaAerobus. In Delta’s case, the AI will act as a “super analyst” that operates 24/7 to determine custom ticket prices that should be offered to individual customers in real-time, per specific flights and times.

Although Delta's AI pricing could increase competition in the airline industry, Slover expects that companies using such pricing schemes are "all too likely" to be incentivized "to skew in the direction of higher prices" because of the AI pricing's lack of transparency.

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