Delta Expands AI Pricing Tech Across Domestic Network

Delta Air Lines is expanding its use of artificial intelligence-driven pricing technology from Fetcherr, with plans to deploy it across 20% of its domestic network by the end of 2025. The move marks a significant step in the airline’s ongoing effort to modernize its revenue management systems using advanced AI tools.

During Delta’s second-quarter earnings call, President Glen Hauenstein revealed that the technology is currently active on about 3% of the airline’s domestic routes, up from just 1% last November. Hauenstein emphasized that Delta is still in the “heavy testing” phase but is optimistic about the early results. He stated the airline is intentionally pacing the rollout to ensure quality and avoid unexpected issues, adding, “We like what we see. We like it a lot, and we’re continuing to roll it out, but we’re going to take our time and make sure that the rollout is successful.”

Fetcherr, recognized as a PhocusWire Hot 25 Travel Startup for 2023, has been collaborating with Delta for over 18 months. The Israel-based company uses generative AI models to optimize real-time pricing for airline inventory, aiming to replace traditional revenue management techniques with more agile and predictive systems.

Beyond dynamic pricing, Delta is also investing in technology upgrades across its business. One key area is the enhancement of Delta Concierge, the airline’s AI-powered virtual assistant within the Fly Delta app, designed to offer more personalized and responsive customer support.

Fetcherr, founded in 2019, recently secured $90 million in Series B funding in June 2024. The funding will support further development, team expansion, and global growth. Alongside Delta, the startup also counts Virgin Atlantic, Royal Air Maroc, and Viva Aerobus among its airline partners.

Delta’s adoption of AI technology reflects a broader trend in the aviation industry, where airlines are turning to advanced machine learning systems to fine-tune pricing, improve operational efficiency, and deliver better customer experiences. As Delta scales Fetcherr’s AI across its network, the results could influence how other major carriers approach revenue optimization in the coming years.

Tags: phocuswire, SyndicEx250727B

Delta Expands AI Pricing Tech Across Domestic Network

Related Posts