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Delta Air Lines is looking to further implement AI, which is expected to increase profits by 50% by cutting costs and reallocating staff to more important tasks. The move, according to View From The Wing, was covered on the Airlines Confidential podcast.
Ed Bastian, the Chief Executive Officer of Delta, has spoken about how the airline looks to replace slow decisions made by people with the use of artificial intelligence, and use these tools to improve airfare pricing, flight upgrades, crew recovery, fuel, back office functions, and maintenance. While the airline has suggested that this will reduce the need for ‘people’, it does not see any immediate loss of headcount.
Using AI To Improve Operational Efficiency
Bastian explained that AI will support the carrier in making better-informed decisions, with more access to timely data to provide a clear perspective of where opportunities are. The airline must make difficult decisions every day, and AI will support the forward-looking needs of one of the world’s largest airlines.
The use of AI, which Bastian has renamed augmented intelligence, has the perspective that it will make its people smarter and more efficient, and that the use of AI will support the increase in operating margin for the airline going from 10% to 15%, which could see around a 50% improvement in profitability, resulting in billions of dollars of additional profit.
In a call to Simple Flying, Delta stressed that it does not see any immediate reduction in headcount and that it will continue to need a strong workforce.
Delta Responds To Misinformation Around AI Pricing
The Atlanta-based airline stressed that it is not using, testing, or planning to use data that would target individuals with separate pricing based on the situation. The airline has a zero tolerance for discriminatory or predatory pricing and plans to fully comply with applicable laws.
Its decision to use AI-powered pricing functionality is planned to enhance the current fare pricing process, using aggregated data. This will support performance insights for the analysts who oversee recommendations, ensuring airfares align with Delta’s overall business strategy. The airline’s ticket prices are dictated by market dynamics and competition. AI pricing functionality will make recommended pricing adjustments to enhance market competitiveness and aim to drive additional sales.
Prices are not targeted to individual consumers, and the airline is currently exploring how AI technology can support pricing through a pilot with Fetcherr, which will aggregate purchasing data for routes and flights, forecast demand, adapt to market conditions, and factor in thousands of other variables.
How Will AI Support Delta Team Members?
Delta plans to further adapt AI to support several aspects of the airline business, including AI-integrated knowledge to help reservations specialists answer complex questions quickly and accurately. This should improve resolution times and enhance overall customer service.
Additionally, an AI-enabled tool will help Tech Ops planners better predict aircraft maintenance needs, directly improving aircraft availability and schedule reliability. Crew scheduling will also use AI to anticipate where crew replacements may be needed, allowing the airline to adapt and plan resources more efficiently.
As one of the world’s largest airlines continues to integrate AI into its business, it has adopted a comprehensive AI governance framework that balances operational enhancements with the highest standards of safety, security and trust. The airline has stressed that its decision to further adapt to the use of AI is to enable its people to do more, better, while improving the bottom line so it can continue to invest in further profitability.
