WASHINGTON – Senator Ruben Gallego (D-AZ) led colleagues in demanding answers from Delta Air Lines CEO Ed Bastian after the company announced its plans to ramp up use of AI to set individualized, surveillance-based fares. Their plan not only presents data privacy concerns but will likely increase prices up to each individual consumer’s personal ‘pain point’ at a time when American families are already struggling with rising costs.
See coverage below:
On the Airwaves
Senator Gallego: “Imagine if you are a family member, your granddaughter has just been born, your grandson has just been born, and you start posting on Facebook. Delta is going to be able to use technology to actually skim that information. And when you go and try to buy a Delta ticket, they know that you’re going to actually want very much to go see that grandchild of yours, and they’re going to actually raise the price. So it’s not a market price, it’s a pressure price, one that is designed around the pressure points they think that you are willing to pay. That is not free market capitalism. That is absolute predatory […] So that’s why it’s important that we step in. We have a right as a federal government when it comes to regulating commerce, especially when this type of action supersedes what we understand is free market capitalism.”
Arizona’s Family (Phoenix, AZ):
Reporter: “[Delta’s] technology is being used to evaluate purchasing behavior, forecast demand for specific routes and flights, and to evaluate competitive offers and alternative sources. So, that’s kind of scraping all kinds of information together.”
Reporter: “Senator Ruben Gallego is one of a few senators who sent a letter to Delta saying, ‘We have some questions, we have some concerns.’ They want to know more about what’s going on. They say there are privacy issues that they are worried about. They say there are also just concerns that the prices are going to go up. I want to read a little portion of the letter to you where they referenced the former Federal Trade Commission chair who cautioned against a particularly egregious but conceivable example of an airline using AI to charge a higher fair to a passenger because the company knows that they just had a death in the family and they need to fly across the country. So that’s an example from the former FTC chair who said, we don’t know if this is happening, but this is possible when we’re using AI.”
Reporter: “Delta just announced it’s going to use AI technology for individualized pricing using an algorithm to show what it thinks the passenger is likely to pay. Arizona Senator Ruben Gallego is among the senators demanding answers from Delta CEO, saying in part, ‘Delta’s current and planned individualized pricing practices not only present data privacy concerns, but will also likely mean fare price increases up to each individual consumer’s personal pain point at a time when American families are already struggling with rising costs.’”
CBS News Bay Area (San Francisco, CA):
Reporter: “Delta Airlines is facing some criticism over its use of AI to determine ticket prices. This is a practice known as surveillance pricing. Delta already uses AI to set prices on 3% of its domestic flights. The airlines president said they are there are plans to expand to 20% by the end of the year. The idea of using AI to set individualized fares has certainly raised privacy concerns in Congress and fears of potential price gouging. […] Senators Mark Warner and Ruben Gallego sent a letter to Delta asking for additional details of its plans.”
Reporter: “We all know plane ticket prices vary depending on flight times or busy travel days. But what if your price depends on who you are? […] Airline industry experts say that’s now the long-term strategy of Delta, moving away from set fares and toward individualized pricing using AI. […] U.S. Senator Ruben Gallego of Arizona sounding off about Delta’s plans on X this week, writing, ‘If Delta thought they could use a blackbox AI algorithm to jack up prices and no one would notice, they should think again. I’m leading my colleagues to demand answers from Delta’s CEO. I won’t stand by while Americans get ripped off.’”
Reporter: “In their letter, Blumenthal, Arizona’s Ruben Gallego, and Virginia’s Mark Warner [said it is a] red flag [for] data privacy concerns and said the plan would likely mean fares would rise up to each individual consumer’s personal pain point. There’s also the fact that a customer has no way of knowing exactly what personal info is being taken into account or how the AI algorithm will be trained. The senators say prices should be set the old-fashioned way through supply and demand.”
Reporter: “What you pay for a Delta Airlines ticket could soon depend less on when you book and more on what an algorithm thinks you’re willing to pay. Delta says about 3% of its domestic tickets are already priced using artificial intelligence, and Delta plans to expand that to 20% by the end of the year. […] Arizona Senator Ruben Gallego tweeted ‘Delta CEO just got caught bragging about using a guy to find your pain point, meaning the squeeze you for every penny. This is not fair pricing. Its predatory pricing. I won’t let them get away with this.’ Critics warn that AI could create two classes of travelers: those who land the deals and those who pay more because the system thinks they can.”
Reporter: “Delta Airlines wants to take AI to the friendly skies. They are planning to expand the use of this technology to up to 20% of their flights. It’s not new, they’re already using it for 3% of domestic flights, according to executives. Delta tells us they plan to use the tech built by the company Fletcher to streamline the pricing process. Using Fletcher in about 3% of flights, they have been able to push up prices. Some consumer advocates are worried this AI tech could lead to not only price hikes, but even surveillance pricing. […] US Senators Ruben Gallego, Mark Warner, and Richard Blumenthal penned a letter to Delta CEO Ed Bastion expressing data privacy and price gouging concerns.”
Reporter: “While airlines have long adjusted fairs based on season and demand, this level of personalization is raising new questions. Arizona Senator Ruben Gallego tweeting, ‘Delta CEO just got caught bragging about using AI to find your pain points, meaning they’ll squeeze you for every penny. This isn’t fair pricing. It’s predatory pricing. I won’t let them get away with this.’”
In Print
Reuters: Delta plans to use AI in ticket pricing draws fire from U.S. lawmakers
[David Shepardson, 7/22/25]
Three Democratic senators have pressed Delta Air Lines CEO Ed Bastian to answer questions about the airline’s planned use of artificial intelligence to set ticket prices, raising concerns about the impact on travelers.
“Delta’s current and planned individualized pricing practices not only present data privacy concerns, but will also likely mean fare price increases up to each individual consumer’s personal ‘pain point’ at a time when American families are already struggling with rising costs,” Senators Ruben Gallego, Mark Warner and Richard Blumenthal wrote in a letter dated Monday and made public on Tuesday.
The senators cited recent comments from Delta that the airline plans to deploy AI-based revenue management technology across 20% of its domestic network by the end of 2025 in partnership with Fetcherr, an AI pricing company.
Business Insider: Senators demand answers about Delta’s new AI-driven pricing plan
[Bryan Metzger, 7/22/25]
Delta Air Lines wants to use AI to set your ticket price — and it isn’t flying with some senators.
Sen. Ruben Gallego of Arizona sent a letter to the airline on Monday asking for the company to clarify what data it’s using to determine prices and the scope of its planned AI rollout.
“Delta’s current and planned individualized pricing practices not only present data privacy concerns, but will also likely mean fare price increases up to each individual consumer’s personal ‘pain point’ at a time when American families are already struggling with rising costs,” reads the letter, which was also signed by Sens. Mark Warner of Virginia and Richard Blumenthal of Connecticut.
Axios: Senators raise alarm over Delta’s AI pricing plan
[Rebecca Falconer, 7/22/25]
Three Democratic senators wrote to Delta Air Lines CEO Ed Bastian Monday to raise concerns about company plans to use AI to set individualized fares, which the airline maintains won’t target customers with offers based on personal details.
Why it matters: Sens. Ruben Gallego (D-Ariz.), Mark Warner (D-Va.) and Richard Blumenthal (D-Conn.) wrote that Delta’s personalized “current and planned individualized pricing practices” would present data privacy concerns and “likely mean” fare price rises “up to each individual consumer’s personal ‘pain point'” at a time when many families were struggling.
News Nation: Airfare by algorithm: Delta leans into AI pricing
[Andrew Dorn, 7/18/25]
In theory, hyperpersonalization meets customers where they are, offering a custom experience every time. But critics warn that the new pricing tactics may exploit rather than benefit consumers.
Democratic Arizona Sen. Ruben Gallego called Delta’s practice “predatory pricing,” accusing the airline of using AI to “find your pain point” and “squeeze you for every penny.”
Time: What Delta’s AI Pricing Means for the Future of Cheap Flights
[Scott Keyes, 7/23/25]
Delta Air Lines has been using AI to help set the price of some tickets. […]
The most common reaction has been outrage. Democratic Arizona Senator Ruben Gallego—a potential 2028 presidential contender—encapsulated this view, calling it “predatory pricing” and vowing he “won’t let them get away with this.”
Fox Business: Will Delta’s planned AI ticket pricing raise your fare? Lawmakers press airline’s CEO for answers
[Sophia Compton, 7/24/25]
A group of Democratic senators is demanding answers from Delta Air Lines over the carrier’s planned implementation of artificial intelligence to set the prices of its tickets, while the airline says consumers will all see identical fares.
In a letter dated Monday, Sens. Ruben Gallego of Arizona, Mark Warner of Virginia and Richard Blumenthal of Connecticut confronted Delta CEO Ed Bastian with questions and concerns about the initiative.
The three lawmakers – citing worries about data privacy and how American households are already burdened with increased expenses – referred to Delta’s recent comments that it plans to implement AI technology across 20% of its U.S. network by the end of the year.
Atlanta Journal Constitution: Delta uses AI to set airfares. Some senators are worried.
[Emma Hurt, 7/23/25]
For more than a year, Delta Air Lines has been exploring how artificial intelligence might revolutionize the way it sets airfares. Several Democratic senators say they’re concerned about what it might mean for consumer privacy and fairness. […]
Sens. Ruben Gallego, Richard Blumenthal and Mark Warner wrote they are worried airlines like Delta could use AI to track individuals and exploit them – including in times of need like traveling for a funeral.
Men’s Journal: Lawmakers Demand Answers From Delta Amid Major Change
[Kevin Harrish, 7/22/25]
Earlier this month, Delta Air Lines President Glen William Hauenstein told reporters that the company was set to expand its use of AI in setting fares for customers. […]
These comments seem to have raised some red flags from lawmakers, as Sens. Ruben Gallego, Richard Blumenthal, and Mark Warner sent a letter to the airline on Monday demanding answers about these changes.
7/29/25