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For years, frequent travelers and consumer advocates have criticized the growing complexity of airline ticket pricing, with so-called “drip pricing” — extra fees for once-free services like checked baggage, snacks, or sitting next to a family member — driving up costs.

A new, unpublished report by Uri Yerushalmi, co-founder and Chief AI Officer at Israeli software startup Fetcherr, suggests that ticket pricing could soon become even more opaque.

Pricing Beyond Human Comprehension

According to the report, Fetcherr has developed an experimental AI-driven system for an undisclosed airline partner. The system replaces relatively simple pricing structures with far more complex models, introducing many more fare classes and prices that change from moment to moment.
The memo describes the approach as a “large market model”, akin to generative AI tools like OpenAI’s DALL·E — but instead of creating art, it analyzes market data and devises revenue-maximizing pricing strategies. Yerushalmi refers to this stage indirectly as the “exploitation phase”.

Delta’s Trial and Political Backlash

Delta Air Lines CEO Glen Hauenstein revealed in July that the carrier uses Fetcherr’s system to price about 3% of its domestic network, with plans to expand that to 20% by year-end.
The announcement drew swift political criticism:

• Democratic Rep. Ruben Gallego warned of potential privacy violations and fare hikes that could hit consumers “at their pain point.”

• Republican Sen. Josh Hawley called it “the worst thing I’ve ever heard from an already miserable airline industry.”

• Democratic Rep. Greg Casar introduced legislation to ban “surveillance-based pricing” nationwide.

Competitors Push Back

American Airlines CEO Robert Isom dismissed AI pricing as “a scam” and “unethical,” while Southwest Airlines said it does not use AI for ticket pricing.
Fetcherr defended its product, saying it does not enable personalized pricing or use personally identifiable information, and can also lower prices during low-demand periods.

The 'Personalized Pricing’ Debate

Despite official denials, a now-deleted 2024 Fetcherr blog post outlined a vision for future “personalized pricing” based on behavioral data and booking context, aiming to understand “each customer as an individual.”
Past statements from Delta executives have also hinted at testing customers’ tolerance for incremental price increases — asking, for example, whether a $20 or $40 hike would impact market share.

Beyond Aviation

Experts warn these practices could spread to other industries. Lindsay Owens, executive director of the Groundwork Collaborative, noted that similar high-tech pricing strategies are already being tested in retail and car rentals, predicting that “the airline industry will export these practices to other sectors.”