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Delta’s AI-Powered Fare Pricing: A Massive Change For Travel And The Airline Industry, Here’s What Future Travellers Should Know Now

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Friday, July 18, 2025

Delta Air Lines is introducing dynamic-pricing this week, an artificial intelligence assisted way of making prices for passengers, throughout its domestic flights. The airline business for years has flirted with automation, but this represents a significant departure — and not just in terms of technology, but in philosophy. Delta intends to use A.I. by the end of the year to help set fares on as many as 20 percent of its U.S. flights. This isn’t just a back-end software tweak; it’s a rethinking of how airfares are calculated, changed and presented to travelers.

A New Era For Travel Planning

For decades, travelers have used patterns and tools — like flight trackers, fare calendars and flexible date searches — to make smart booking decisions. Delta’s AI strategy wants to shake that up by offering dynamic, real-time pricing that factors in how people are booking. That means what’s on your screen may not look the same to someone else for the same seat. No longer are fare classes straightforward and price drops predictable on Tuesdays. What’s actually happening instead is that we’re entering this new era in which airfare is customized to what the airline thinks you, specifically, are willing to pay.

This has huge implications for travel planning. Your spontaneous trips, budget vacations, or even loyalty-driven bookings may be impacted by how well Delta’s AI understands your profile and purchase intent. It could encourage travelers to forge a tighter connection with Delta, booking directly through the company’s systems and bypassing convenient third-party tools like Google Flights and Expedia, which may not be able to access the tailored offers.

Inside The Innovation: Delta’s Artificial Intelligence Bet

The tech driving the move is courtesy of Israeli startup Fetcherr, whose AI-based engine feeds off of booking data, route performance, seasonality, and external factors to recommend what’s hot, price-wise — not merely for the airline, but by buyer. So far, the early results are promising, Delta executives say: more revenue, and not lopsided numbers of passengers furious at the changes.

And this is not just an incremental efficiency advance. It’s a step forward in airlines’ approach to managing revenues strategically. Legacy fare solutions, which that depend on rigid fare classes and static updates, are unable to accommodate demand’s unpredictability and personalized travel behaviors. AI changes that. It is always on, always learning, and always ready to adjust fares — sometimes by the minute.

Consumers In The Crosshairs: Boon or Bust?

This development is a mixed bag for travelers. On one hand it could result in more aggressive fares if the system understands that there are segments of fliers who are willing to book at lower prices. On the other, it also creates an odd ambiguity: how do you know you are getting a fair price?

The current market is about moving toward transparency, but not so AI fares are not fully transparent like traditional fare where base fare open up or close basis on when it is book or how fare the departure is. Travelers may begin to question whether their browsing history, loyalty status or even what kind of computer they use is having an effect on the price that you’re offered. If left unaddressed that ambiguity might undermine consumer trust.

Concerns Of Privacy And Algorithmic Ethics Raised

What types of data AI systems are using to arrive at decisions around pricing are increasingly a matter of concern. Does it only apply to your old reservation? Or does it encompass your whereabouts, online behavior, even your income points? While Delta says it is introducing this technology in slow stages out of concern for “unwanted answers,” watchdogs and privacy advocates are calling for sharper guardrails sooner.

The airline industry has long been governed with exacting regulations around safety and accessibility, but now it is on the front lines of data ethics. With the increasing control of AI systems over pricing, transparency and fairness cannot be an afterthought, but must be central to their implementation.

Global Ripples And Competitive Response

Delta may be spearheading the AI pricing charge in the U.S., but it is not alone worldwide. Airlines including WestJet, Virgin Atlantic and AirAsia are already testing similar models. And as competition intensifies, AI adoption could no longer be a matter of choice. Carriers who are too slow to innovate will end up in the dust in a market that is now fast moving towards personalized digital interactions.

Tour operators and travel agencies will, likewise, have to recalibrate. Package pricing, block discounts and bundled fares may all change with dynamic personal pricing. Travel intermediaries may be squeezed unless they can cut new deals or access airlines’ real-time pricing APIs.

A Future Rewritten By Algorithms

Delta’s AI-driven pricing experiment isn’t just a tech test case for what’s possible in air travel — it’s also a look into the future, and perhaps the end, of some aspects of the way we travel. It shatters decades of fare-setting convention and presents both tantalizing scenarios and thorny conundrums for the travel industry. And for passengers, it signifies that the days of “one fare fits all” are coming to an end. For airlines, it’s a high-stakes bet on innovation, data and trust.

And as this technology matures, one thing that seems certain is that the way we experience and pay for travel may never be the same.



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MP Govt Signs Deal with Submer to Build Eco-Friendly AI Data Centres

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 The Madhya Pradesh State Electronics Development Corporation (MPSEDC) has signed a Memorandum of Understanding (MoU) with Spain-based Submer Technologies. 

The agreement will pave the way for developing up to 1 gigawatt of next-generation, AI-ready data centre capacity in Madhya Pradesh, using Submer’s advanced cooling technologies. These technologies, like immersion cooling and direct-to-chip solutions, help save energy, reduce water usage, and lower the overall environmental impact of data centres.

 “Following our visit to Submer’s facility, we are convinced of the potential for transformative collaboration. This partnership reflects our vision for sustainable technology, job creation, and positioning Madhya Pradesh as a preferred destination for global innovation,” Mohan Yadav  CM, MP said.

The deal was finalised after a high-level visit to Submer’s innovation centre in Barcelona on July 17, 2025. 

As part of the agreement, the MP government will support the project by helping with land allocation, approvals, and investment incentives.

On the other hand, Submer will offer expertise in design, training, and technical support to set up the facilities. The company’s solutions have already led to 600 GWh of electricity savings and saved over 3 billion liters of water worldwide.

“This MoU marks the beginning of a robust partnership that will catalyze local employment, skill development, and innovation while building scalable infrastructure for the AI era,” Sanjay Dubey,additional chief secretary of department of science and technology, GoMP  said.

Submer’s leadership team is expected to visit MP later this month to explore potential sites and meet with local partners.



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DAZN Opens India’s First Sports-Tech GCC in Hyderabad, Plans to Hire 3,000 by 2026

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DAZN, the world’s leading sports streaming platform, opened India’s first sports technology global capability centre (GCC) in Hyderabad on July 18, 2025 . The new centre will serve as DAZN’s largest global hub and is expected to create around 3,000 jobs by the end of 2026.

DAZN plans to invest ₹500 crores over the next three years to expand operations in Hyderabad. The centre will focus on developing advanced sports technology, using AI and real-time analytics, while also working with academic institutions for training, research, and job creation in Telangana.

Speaking at the launch, Telangana IT and Industries minister Duddila Sridhar Babu said that the move reflects DAZN’s trust in Telangana’s skilled talent, strong infrastructure, and supportive government.

He also emphasised the rapid growth of Hyderabad as a top destination for GCCs. “Nearly one new GCC is being added every week in the city,” he said.

Babu also spoke about the state’s broader growth plans, including expanding development to tier-2 and tier-3 cities. “Telangana is investing over $15 billion in infrastructure projects like AI City, sports city, EV mobility, and the regional ring road,” he said. 

DAZN has been growing rapidly in India since launching its centre of excellence in Hyderabad in 2023. In just two years, it has expanded to over 1,500 employees, including engineers, developers, and data scientists.
“Hyderabad has been a perfect destination for DAZN to grow its technology and product operations, thanks to the state government’s progressive policies, world-class infrastructure, and highly skilled talent pool,”Sandeep Tiku, DAZN’s CTO, said.



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Delta Air Lines to Expand Use of AI in Pricing This Year

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by Lacey Pfalz
Last updated: 8:50 AM ET, Sat July 19, 2025

Delta Air Lines is set to expand the use of artificial intelligence to determine airfare after testing a pilot program which used AI to set 3 percent of the airline’s airfare, but privacy advocates and government officials are concerned that it could lead to price hikes and discriminatory pricing. 

The airline was one of the first to consider using AI to determine airfare, a measure that was announced back in 2023 by the airline’s president, Glen Hauenstein. They’ve partnered with Israeli company Fetcherr to use AI to set prices.

According to Fortune, Hauenstein told investors during the latest financial call that Delta will expand the use of AI from setting 3 percent of ticket prices to 20 percent by the end of the year, with a goal of doing away with static pricing altogether. 

“This is a full reengineering of how we price and how we will be pricing in the future,” he said on the call. Eventually, he told investors, “we will have a price that’s available on that flight, on that time, to you, the individual.”

Yet what does that mean, exactly?

While Delta maintains that their fares are public and based on trip-related factors, travel websites have a history of changing fares based on factors like web browser or ZIP code.

The expansion of AI into determining fares, some critics say, could end fair pricing because travelers will never see a universal rate, only the rate that the AI algorithm predicts a traveler will pay based on a variety of factors about that specific traveler.  

“They are trying to see into people’s heads to see how much they’re willing to pay, Justin Kloczko, who analyzes so-called surveillance pricing for California nonprofit Consumer Watchdog told Fortune. “They are basically hacking our brains.”  

There are laws protecting consumers from being charged different rates based on their sex or ethnicity, but Consumer Watchdog and others warn that pricing could become predatory for people of different classes. 

Lawmakers are also taking note. Senator Ruben Gallego (D-AZ) tweeted this message about it on X on July 15: “Delta’s CEO just got caught bragging about using AI to find your pain point — meaning they’ll squeeze you for every penny. This isn’t fair pricing or competitive pricing. It’s predatory pricing. I won’t let them get away with this.” 

The integration of AI into businesses and travel brands has been a conversation topic that repeatedly returns to the issue of ethical implementation as worries about it replacing people’s jobs and stealing protected information becomes top of mind. 


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