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Delta CEO says AI could mean higher profits. Is it good for travelers?

ATLANTA — Delta’s CEO says AI could transform the airline industry and lead to an explosion of profits.

Last week, CEO Ed Bastian spoke on the “Airlines Confidential Hosted by Scott McCartney” podcast and said the technology could lead to a 50% improvement in profitability.

Bastian said AI could help airlines make better decisions across nearly every part of their operation, from predicting maintenance issues and managing flight crews to reducing fuel costs and improving efficiency.

“When you think about what AI does, it allows you to hopefully make better decisions,” Bastian said.

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For Delta, that could mean billions of dollars in additional profit.

However, Bastian said AI is only part of the equation, and that humans have to be involved.

“I think the opportunity is there. I think the issues of trust and governance are also really important. And that’s why I never refer to AI as artificial. I always call it augmented intelligence,” he said.

While Delta sees potential benefits, some travelers are wondering whether those gains will eventually benefit passengers as well.

“It’s scary,” traveler Taot Malo said. “They say profit, but I see cutbacks.”

One concern involves ticket pricing. Malo says he thinks the tech could lead to higher prices as companies try to use AI to maximize revenue.

“It’s already high enough. I just did a one hour, 15-minute flight, cost me $400,” Malo said.

Last year, members of Congress questioned Delta and other airlines about the potential use of artificial intelligence to personalize fares based on personal data.

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Delta has repeatedly said it does not use personal information to determine ticket prices and has no plans to do so.

Still, some experts say AI could eventually become much more sophisticated at analyzing what consumers are willing to pay.

“Pricing is a much more sophisticated kind of concept, and AI can fundamentally change how that is done,” Emory University professor Ramnath Chellappa said.

He says AI could theoretically identify what customers value and tailor offers accordingly.

“The ability for the airline or the vendor to know who you are, what you’re willing to pay,” Chellappa said.

Traveler Pam Sundby said she sees promise in the technology but believes airlines will need to be careful in how they implement it.

“It has a lot of potential, and it can work,” Sundby said. “But to my point, it’s got to be done well.”

Delta says it already uses AI to assist with some pricing decisions, but maintains that it looks at broader trends rather than personal information.

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