American Airlines Chief Blasts Delta's AI Pricing Plans as 'Inappropriate'

American Airlines Chief Executive Robert Isom criticized the use of AI in setting air fares during an earnings call, calling the practice "inappropriate" and a "bait and switch" move that could trick travelers. Isom's comments target Delta Air Lines, which is testing AI to help set pricing on about 3% of its network today with plans to expand to 20% by year-end. Delta maintains it is not using the technology to target customers with individualized offers based on personal information, stating all customers see identical fares across retail channels. US Senators Ruben Gallego, Richard Blumenthal, and Mark Warner have questioned Delta's AI pricing plans, citing data privacy concerns and potential fare increases. Southwest Airlines CEO Bob Jordan said his carrier also has no plans to use AI in revenue management or pricing decisions.

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