Delta CEO Ed Bastian is talking about artificial intelligence again, and this time he’s putting some very big numbers behind it.
Bastian recently suggested that AI could eventually help Delta improve its profitability by as much as 50%. That doesn’t mean Delta expects profits to suddenly jump 50% next year. He was illustrating how better decisions and lower costs could potentially move a roughly 10% margin to 15% over time.
For Delta travelers, though, the most interesting part is pricing.
What Delta Is Actually Doing With AI
Delta already uses sophisticated technology to manage fares, as airlines have for decades. AI potentially makes that process much more powerful.
Bastian recently explained that Delta has hundreds of thousands of price points available at any given time. Humans simply can’t actively manage every one.
AI can continuously analyze the market and help Delta determine whether a particular fare should be higher or lower. Bastian characterized it as a tool for Delta’s revenue managers rather than a replacement for them.
That distinction is important.
Delta has faced criticism over the possibility that AI could lead to individualized pricing, where two customers might theoretically receive different fares based on what an algorithm thinks each person is willing to pay.
Bastian says that’s not happening.
He recently said Delta is doing “none of that” and that the airline never intended to use surveillance-style personalized pricing.
Should Delta Travelers Be Worried?
Probably not, at least based on what Delta says it’s currently doing.
Airline pricing has always been dynamic. The same seat can cost $250 one day and $600 the next depending on demand, remaining inventory, competition and dozens of other variables.
AI appears to be making Delta better at making those pricing decisions.
But there’s an important implication for travelers.
If Delta becomes significantly better at determining exactly when demand supports a higher fare, some of the pricing inefficiencies travelers have historically benefited from could disappear.
In other words, AI doesn’t necessarily mean higher fares everywhere. It could mean smarter fares everywhere.
And smarter pricing for Delta isn’t necessarily better pricing for you.
✈️ Medallion Mafia Tip
Don’t assume loyalty means Delta will always offer the best price. Even if you’re chasing Medallion status, compare fares before booking. If Delta’s AI gets better at revenue management, knowing when you’re paying a substantial Delta premium may become even more important.
Final Verdict
The scary version of this story is that Delta knows who you are and uses AI to determine the maximum amount you’ll personally pay for a ticket.
That’s not what Bastian says Delta is doing.
The more realistic story is less dramatic but still important: Delta wants AI to make it significantly better at pricing airline seats.
For shareholders, that’s potentially very valuable.
For SkyMiles members and frequent Delta flyers, it’s something worth watching.