Delta Airlines is significantly increasing the implementation of artificial intelligence in the calculation of airfares, planning to raise its usage from 3% to 20% for domestic flights by year-end. The airline is in a rigorous testing phase to train AI models for pricing decisions. Delta has partnered with Fetcherr, an AI company that offers a Large Market Model for predicting demand and optimizing pricing. This trend of airlines employing AI and algorithms for pricing is not new, as they have previously utilized similar technology for fare predictions.
Glen Hauenstein stated that Delta aims to increase AI's role in calculating airfares from 3% to 20% of domestic flights by year-end.
Delta is currently in a heavy testing phase for AI models, requiring time to train and allow for various results in fare calculations.
Fetcherr's AI technology forecasts demand and market trends, enabling airlines to make real-time pricing decisions and automate price publishing.
The implementation of AI in airline fare calculations follows a trend where airlines have historically used algorithms for fare predictions.
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