American Airlines Explores AI for Fare Filing, Emphasizes Time-Saving

Airplane wing with digital code background.

American Airlines is investigating the use of artificial intelligence to streamline its complex fare filing process. This move comes after a period of scrutiny regarding competitors’ AI pricing strategies. The airline assures that the AI integration is focused on efficiency and automation, not on personalizing prices for individual customers.

Key Takeaways

  • American Airlines is exploring AI to automate the filing of millions of fares daily.
  • The airline stresses that AI will be used for time-saving and competitiveness, not personalized pricing.
  • This initiative follows criticism of competitor Delta Air Lines’ use of AI in pricing.

AI in Fare Management

American Airlines’ Vice Chair and Chief Strategy Officer, Steve Johnson, revealed the airline’s interest in AI at the Morgan Stanley Laguna Conference. He explained that the airline files an "uncountable number of fares, three times a day," all requiring competitiveness in a dynamic market. AI, he stated, will assist in this process.

This announcement comes less than two months after American’s CEO, Robert Isom, expressed reservations about Delta Air Lines’ use of AI for pricing. Isom had stated that American would not engage in practices that could be perceived as "bait and switch" or "tricking" customers.

American Airlines has clarified to The Points Guy that any AI tools considered for fare filing are intended to save time and automate the process of submitting numerous fares across its network. The airline reiterated its commitment to not personalizing fares based on individual customer data, aligning with Isom’s earlier statements.

Industry Analyst Perspective

Industry analyst Henry Harteveldt views American’s approach positively, suggesting that AI will enable airlines to be more responsive to market changes and enhance competitiveness. He interprets American’s move as a strategy to remain competitive, particularly against airlines that may offer lower prices.

Delta Air Lines, despite facing scrutiny from lawmakers, has also maintained that its AI tools are used solely to aid in pricing decisions based on publicly available data and market dynamics. Delta is reportedly partnering with an Israeli tech firm for its AI pilot program.

Broader AI Applications at American Airlines

Beyond fare filing, American Airlines is also exploring AI for other operational improvements. Johnson mentioned that the carrier sees potential in AI to assist customers with rebooking flights following delays or cancellations. Furthermore, the airline is already utilizing generative AI tools to help manage operational disruptions caused by severe weather or other significant events.

Johnson emphasized the complexity of the airline business and the value of automation in providing comprehensive and faster solutions.

Sources

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