Latest news with #Fetcherr
Yahoo
2 days ago
- Business
- Yahoo
Delta Air Lines, Inc. (DAL) Expresses Confidence in Future Growth; Reaffirms Full-Year Earnings Guidance
Delta Air Lines, Inc. (NYSE:DAL), considered a cheaply priced stock and a top pick among analysts, is included in our list of the . Chris Parypa Photography / With strong free cash flow, margin discipline, and forward-thinking investments, Delta Air Lines, Inc. (NYSE:DAL) remains optimistic about its future growth outlook. In its earnings call, published on July 11, 2025, Delta Air Lines, Inc. (NYSE:DAL) maintained its full-year 2025 EPS guidance of $5.25 to $6.25, expecting $3 to $4 billion in free cash flow. This supports the company's plan to reduce its debt by $3 billion and increase its dividend by 25%. Meanwhile, the company's diversified, high-margin revenue segments now account for 66% of total revenue. This includes record co-branded card revenue from American Express, which is up 10% YoY. Furthermore, Delta Air Lines, Inc. (NYSE:DAL) eyes future growth with heavy investments in global expansion (e.g., WestJet and IndiGo partnerships), premium cabin growth, AI-powered revenue tools like Fetcherr, and customer experience enhancements such as Delta Concierge. With these growth strategies, Delta aims to broaden its margins and capitalize on evolving travel patterns. With its Airline and Refinery segments, Delta Air Lines, Inc. (NYSE:DAL) offers scheduled air transportation service for passengers and cargo. It is included in our list of cheap travel stocks. While we acknowledge the potential of DAL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 14 Cheap Transportation Stocks to Buy According to Analysts and 10 Cheap Lithium Stocks to Buy According to Hedge Funds. Disclosure: None.
Miami Herald
3 days ago
- Business
- Miami Herald
A price just for you, specifically
Imagine that an airline notices you've booked a five-star hotel, so it charges you more for your ticket than it would have if you had booked a four- or three-star hotel. That's the vision of personalized pricing, a concept that has for years intrigued companies and enraged consumer advocates. While consumer backlash may still give companies pause, some roadblocks to widespread use of the strategy may be clearing. The Trump administration introduced a plan this past week to clear the way for artificial intelligenceinnovation, reinforcing its embrace of AI and raising questions about whether inquiries into the practice that Biden-era regulators started will be given any priority. At the same time, the technology has developed at a rapid pace. 'It's going to be: Whatever you can get away with, it's legal,' Robert W. Mann, an independent airline industry analyst and former airline executive, said. When it comes to regulatory scrutiny, he added, 'from curious to none is probably the transition.' Delta Air Lines promoted its plans this month to ramp up its use of AI to set prices. And while it's not clear what data the airline is using -- and whether it constitutes personalized pricing -- privacy experts and industry analysts say many companies may see an opportunity to open what they've long considered to be an untapped gold mine. Delta has been met with swift backlash. It said on its latest earnings call that it was working with Fetcherr, an AI startup, and planned to use AI to price 20% of domestic routes by the end of this year. But it has pushed back against claims that it's turning to 'personalized' pricing. In a statement, it said it was leaning into new technology to streamline existing dynamic pricing models, which are based on market factors, not personal information. 'Fetcherr's technology has been developed to streamline processes already in place at companies and does not allow for individualized or personalized pricing,' the startup said in a statement. Regardless of the consumer data that Fetcherr is offering Delta specifically, an archived version of a Fetcherr blog post, reported earlier by the Thrifty Traveler blog, hailed the startup's ability to offer 'truly personalized' prices to travelers, based in part on their past purchases. Under the Biden administration, regulatory scrutiny of personalized pricing started to build. Members of Congress and data privacy experts have raised concerns about the strategy in industries such as groceries and travel. Last year, the Federal Trade Commission, under its previous chair, Lina Khan, opened an inquiry into 'surveillance pricing' -- another term for the use of personal data to set prices. The market study examined practices at several companies, including Mastercard, JPMorgan Chase and Accenture. Initial findings released in January said that 'consumer behaviors ranging from mouse movements on a webpage to the type of products that consumers leave unpurchased in an online shopping cart can be tracked and used by retailers to tailor consumer pricing.' It's not clear whether the Trump administration will make those inquiries a priority. The FTC under its new chair, Andrew Ferguson, withdrew public comment on surveillance pricing. Joe Simonson, an agency spokesperson, said that the study was ongoing. 'If Democrats are complaining about this practice, we're actually doing something about it. We're looking into this issue,' he said. An 'AI Action Plan' that President Donald Trump outlined this past week recommends that the FTC review prior investigations to make sure they don't 'unduly burden AI innovation.' 'All of that does lead to an opening for surveillance pricing, and emboldening,' Ben Winters, the director of AI and privacy at the Consumer Federation of America, said. Public backlash could still thwart AI pricing ambitions. After the uproar over Delta's public embrace of AI to set airfares, American Airlines called the practice inappropriate. 'Consumers need to know that they can trust American,' the CEO, Robert Isom, said on an earnings call. But Gene Burrus, a law and policy consultant who worked as American Airlines' competition lawyer 25 years ago, said consumer backlash was less of a concern for airlines than it used to be, in part because of consolidation in the industry. Mergers have left just a handful of major airlines, which means travelers have fewer places to turn if they're upset with an airline's pricing, he said. Will Congress step in? Three Democratic senators sent Delta a letter this past week raising concern about the airline's AI plans and the impact on travelers. A Republican senator, Josh Hawley of Missouri, said in a social media post that Delta's plans were 'the worst thing I have heard from the already awful airline industry.' Also this past week, Rep. Greg Casar, D-Texas, introduced legislation to ban surveillance pricing at the federal level. It's unclear how far that bill will go. A handful of states, including California, Georgia and New York, have introduced bills to regulate the practice, too, though several have stalled or been watered down. It's difficult to tell exactly what data companies are using. While critics worry about privacy breaches and higher prices, consumer companies have countered that AI-driven pricing won't harm already strained shoppers -- and could even lead to more discounts. For regulators, the competing claims pose a challenge, said Victoria Noble, a staff attorney at the Electronic Frontier Foundation. She added: 'They would have to peer under the hood to look at what these tools are actually doing.' This article originally appeared in The New York Times. Copyright 2025
New York Times
4 days ago
- Business
- New York Times
A Price Just for You, Specifically
Imagine that an airline notices you've booked a five-star hotel, so it charges you more for your ticket than it would have if you had booked a four- or three-star hotel. That's the vision of personalized pricing, a concept that has for years intrigued companies and enraged consumer advocates. While consumer backlash may still give companies pause, some roadblocks to widespread use of the strategy may be clearing. The Trump administration introduced a plan this week to clear the way for A.I. innovation, reinforcing its embrace of A.I. and raising questions about whether inquiries into the practice that Biden-era regulators started will be given any priority. At the same time, the technology has developed at a rapid pace. 'It's going to be: Whatever you can get away with, it's legal,' Robert W. Mann, an independent airline industry analyst and former airline executive, told DealBook. When it comes to regulatory scrutiny, he added, 'from curious to none is probably the transition.' Delta Air Lines promoted its plans this month to ramp up its use of A.I. to set prices. And while it's not clear what data the airline is using — and whether it constitutes personalized pricing — privacy experts and industry analysts say many companies may see an opportunity to open what they've long considered to be an untapped gold mine. Delta has been met with swift backlash. It said on its latest earnings call that it was working with Fetcherr, an A.I. start-up, and planned to use A.I. to price 20 percent of domestic routes by the end of this year. But it has pushed back against claims that it's turning to 'personalized' pricing. In a statement, it said it was leaning into new technology to streamline existing dynamic pricing models, which are based on market factors, not personal information. Want all of The Times? Subscribe.
Miami Herald
6 days ago
- Business
- Miami Herald
Delta uses AI to set airfares. Some senators are worried
For more than a year, Delta Air Lines has been exploring how artificial intelligence might revolutionize the way it sets airfares. Several Democratic senators say they're concerned about what it might mean for consumer privacy and fairness. Expanding the use of AI to set individualized fares, the senators wrote in a letter, will "likely mean fare price increases up to each individual customer's personal 'pain point' at a time when American families are already struggling with rising costs." Sens. Ruben Gallego, Richard Blumenthal and Mark Warner wrote they are worried airlines like Delta could use AI to track individuals and exploit them - including in times of need like traveling for a funeral. But Atlanta-based Delta says that's not what the technology is doing. "There is no fare product Delta has ever used, is testing or plans to use that targets customers with individualized offers based on personal information or otherwise," a spokesperson said. Instead, the technology is using demand for specific routes and flights, flight time and date, customer demand, the price of jet fuel and other information. Israeli startup Fetcherr manages pricing for about 3% of Delta's domestic schedule, company President Glen Hauenstein told investors last week. That's up from 1% last November, and it hopes to reach 20% by the end of the year. "We're in heavy testing phase," he said. "We like what we see. We like it a lot, and we're continuing to roll it out. "But we're going to take our time and make sure that the rollout is successful, as opposed to trying to rush it and risk that there are unwanted answers in there," he said. The company is already seeing improved "unit revenues" from it, Hauenstein noted. In a statement Fetcherr reiterated that its technology "does not allow for individualized or personalized pricing." The AI system "does not and will not use, collect or receive any Personally Identifiable Information" and the company "remains steadfast in our commitment to transparency and to our compliance with applicable regulations." 'Everyone is doing it' Delta is not alone in its search for ways to revolutionize an airfare pricing model that dates back decades, said Laurie Garrow, director of the Air Transportation Lab at Georgia Tech. The lab conducts airline revenue management research with input and funding from corporate airline members - including Delta - and will be increasing its focus on AI. Fetcherr, for example, is already working with several other airlines, including Delta partners WestJet and Virgin Atlantic. "Everyone is doing it," Garrow told the AJC. And when it comes to an impact on jobs, Fetcherr argues its technology"isn't replacing revenue management professionals - it's empowering them." As Delta and other airlines continue expanding their range of fares and cabin classes, it's "very difficult" to match that with a range of prices, Garrow said. AI is needed to handle that scale, she argued. Traditional airline pricing involves buckets, or "steps," of fares, she explained. When one is sold out, the next up is offered. But AI allows for far more variety in the airline's decision about what the next higher fare might be, she explained. The algorithm might recognize that a jump from $100 to $300 is usually too much for someone who appears to be traveling on a vacation - and instead will offer a discount down from $300, in an effort to close the sale. "If you're doing a Saturday night stay and you're going to a leisure destination, we know you're more price sensitive, so you're more likely to see a discount," she said. So far, she said, the technology doesn't seem to be "using gender, using age, using ZIP code, using IP (address)." It's more the time of day or how far out one is booking that can determine a customer's price sensitivity. International privacy laws and the threat of public backlash for something like hypothetical price gouging for a funeral attendee, she said, will likely keep it that way. At this point, when the technology isn't implemented across platforms, a traveler might notice it only if they compare prices on a carrier's website versus a travel agency, she explained. 'Making more money' "Pricing based on AI algorithms will no doubt increase revenues for Delta," the senators wrote. "However, with respect to the interests of Delta's passengers, there is a danger that this approach will result in higher fares and diminish incentives to improve service." Arlines are "going to be making more money," Garrow confirmed. But that could be because they have gained passengers that might have otherwise looked to a competitor, she argued. Or a price increase might happen for premium travelers who can afford it. And "the more revenue I can get out of the premium class, then the more discount fares I'm able to offer for families or the more price sensitive," Garrow added. Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
Daily Mail
7 days ago
- Business
- Daily Mail
Fury as Delta rolls out sinister new tool to ensure it gets away with the highest possible fares
Delta Air Lines is under fire from lawmakers who say the carrier's new AI ticket-pricing plans could mean higher fares for ordinary Americans already buckling under rising costs. America's second-largest US airline by daily flights says it's expanding a pilot program that uses computers to help set fares. By the end of the year, 20 percent of all fares will be set AI in partnership with Fetcherr, a pricing company. Democratic senators Ruben Gallego, Mark Warner and Richard Blumenthal fired off a letter to Delta CEO Ed Bastian demanding to know if its AI tools are designed to hike fares up to each passenger's personal 'pain point.' A Delta exec previously boasted the system can predict 'the amount people are willing to pay for the premium products related to the base fares,' sparking fears of a digital price squeeze. Delta insists it isn't using personal data to target individual passengers, saying dynamic pricing has been standard for decades and that 'all customers see the same fares and offers in all retail channels.' The airline says AI is only being tested to forecast demand, factor in thousands of market variables in real time, and speed up manual pricing adjustments. It's not the first AI pricing storm to hit the airline industry. Back in January, Blumenthal and other lawmakers grilled Frontier and Spirit over alleged seat fee manipulation, but the low-cost carriers never answered. Delta said it is using AI tools to figure out how much each customer is willing to pay to get on their flights 'This is a full reengineering of how we price and how we will be pricing in the future,' Glen Hauenstein, Delta's president, said during a June 10 earnings call. 'We like it a lot, and we're continuing to roll it out.' Consumer advocates are warning that the program could be 'predatory' for consumers and could spell the end of 'fair' pricing. If the tech lands smoothly, Delta says it could eventually hand over nearly all pricing decisions to its new digital co-pilot. Hauenstein said the AI is still in a 'heavy testing phase,' and reiterated the company will not rush the program out to its customers if issues arise. Airlines have long offered different prices for consumers, even for the same journey, based off factors including how far in advance they buy the ticket and whether they shop directly or with a comparison-shopping site. But AI is now supercharging changes to pricing models. 'AI isn't just optimizing business operations, but fundamentally rewriting the rules of commerce and consumer experience,' Matt Britton, author of Generation AI, told Fortune. 'For consumers, this means the era of 'fair' pricing is over. The price you see is the price the algorithm thinks you'll accept, not a universal rate.' The AI announcement comes as Delta made some major news about its profits forecast. Delta's CEO, Ed Bastian, said customers cut back on domestic economy seats amid economic uncertainty In April, the company pulled its financial guidance, saying the American economy was going through too much turmoil to determine how much money the company would make. Ed Bastian, the company's CEO, said consumer confidence 'certainly took a big dip in the early part of the year and then again in April, after the Liberation Day announcements were made.' But now the company has reinstated its profit guidance after it beat Wall Street's expectations for the second quarter of the year. Still, the company is facing some customer headwinds. Delta said that domestic economy seat sales fell 5 percent in the previous quarter. It will cut some domestic flights from the schedule in August.
