Key Takeaways
- American Airlines won’t use AI to set prices in ways that are “just not good” or would lead to “distrust,” CEO Robert Isom said.
- The comments come after Delta Air Lines said it plans to expand its use of AI in ticketing.
- Both airlines are focusing on serving those who buy premium tickets amid sluggish main cabin sales.
American Airlines wants you to know they aren’t using AI in ways they say amount to “tricking” customers who are searching for tickets.
CEO Robert Isom on a conference call Thursday said American Airlines Group (AAL) will use artificial intelligence to operate more efficiently and showcase amenities to customers. But “some of the things I’ve heard are just not good,” he said in response to a question about using AI to help determine ticket pricing.
“Consumers need to know that they can trust American, okay? This is not about bait and switch. This is not about tricking,” Isom said, according to a transcript made available by AlphaSense. “Others that talk about using AI in that way—I don’t think it’s appropriate.”
Neither Isom nor the reporter who raised the question named Delta Air Lines (DAL), but the comparison seemed inescapable. Delta has said it would increasingly use AI to identify the highest prices it can charge without losing sales, according to President Glen Hauenstein, citing “amazingly favorable” results. The carrier plans to deploy technology offered by Israeli company Fetcherr on 20% of domestic flights by the end of the year, Hauenstein said this month.
“There is no fare product Delta has ever used, is testing, or plans to use that targets customers with individualized offers based on personal information or otherwise.,” Delta spokesman Andrew Post told Investopedia. “A variety of market forces drive the dynamic pricing model that’s been used in the global industry for decades, with new tech simply streamlining this process.”
AI aside, the airlines are adopting similar strategies. American, like Delta, is prioritizing the higher income customers who tend to buy premium tickets amid sluggish main cabin sales. American plans to increase its premium capacity by 50% over the next five years and expand its international service, Isom said. Meanwhile, the carrier is reducing domestic capacity.
American shares were recently down 8%, and have lost about one-third of their value so far this year.


