American Airlines’ usage of artificial intelligence (AI) is focused on operational efficiency, according to the company’s CEO, while certain other applications of the technology are deemed improper.
Rival Delta Air Lines recently announced plans to increase its use of AI in pricing from 3% of its domestic network to around 20% by the end of the year, following studies that began in late 2023. When asked if American Airlines was considering the same, CEO Robert Isom responded bluntly.
“I appreciate the question because, quite frankly, I think that some of the things I’ve heard are just not good,” Isom remarked, without identifying any airlines. For Americans, we will use artificial intelligence to improve the airline’s operational efficiency. We will become more efficient as a result.”
One of America’s major AI investments is in a project called HEAT (Hub Efficiency Analytics Tool). Internally designed, it includes an algorithm that can dynamically adjust the airline’s flight plans when severe weather strikes the carrier’s major hubs.
During disruptive events, the tool enables Americans to rapidly rebuild their operations. Overall, Isom defined Americans’ other AI usage as aimed at improving the experience for its staff and external clients. Customers will be able to view more of the carrier’s facilities and experience faster service during disrupted travel, as related projects are underway.
American Airlines on Consumer Trust and AI Ethics
“For us, of course, we’re going to find ways to get our product in front of consumers, but consumers need to know that they can trust American Airlines—this is not about bait and switch,” Isom said during the results conference call on July 24. “This is not about ‘tricking’ and [as for] others that talk about using AI in that way, I don’t think it’s appropriate and certainly from America, it’s not something we will do.”
Airline plans to incorporate AI into their pricing procedures have already drawn scrutiny from the US government, raising concerns about how the technology could set different fees and fares. Delta has fought back, referring to the goal as optimization. In a December 2024 Senate subcommittee hearing on ancillary fees, officials from American Airlines were questioned about whether AI deployment for that purpose could be misused and damage consumers. Delta’s use of AI in pricing is “about the right offer at the right time, as opposed to a thousand different offers to a thousand different people,” according to Delta Chief External Affairs Officer Peter Carter.
By early 2025, eight airlines, six of which were commercial, had begun testing a Generative AI-driven pricing engine developed by Israeli startup Fetcherr. Delta is the company’s first US customer. Fetcherr claims that once adopted, its solution can increase income by 6-9%, while emphasizing that no private consumer data is collected. Executives highlighted that the approach relies solely on public and market data.
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