Airlines Reject AI-Driven Pricing Amid Legislative Push
American and Southwest Airlines announce they will avoid AI-driven pricing amid proposed consumer protection legislation.
Key Points
- • American Airlines and Southwest Airlines will not use AI for pricing models.
- • The 'Stop AI Price Gouging and Wage Fixing Act of 2025' aims to stop price manipulation based on search histories.
- • American Airlines CEO stresses the importance of consumer trust in pricing practices.
- • The legislation is seen as a potential bipartisan effort to increase transparency in AI usage.
In a significant move amid growing concerns over AI pricing practices, American Airlines and Southwest Airlines have publicly committed to not using artificial intelligence to determine ticket prices. This decision comes in response to the proposed 'Stop AI Price Gouging and Wage Fixing Act of 2025,' introduced by Congressman Greg Casar (D-Texas). The legislation aims to prevent airlines from adjusting prices based on customers' online behaviors, particularly their search histories for flights.
American Airlines CEO Robert Isom emphasized the importance of maintaining consumer trust, stating that the airline wishes to distance itself from any practices perceived as exploitative, particularly in sensitive situations such as emergencies. Isom explained that this commitment aligns with their goal of transparency in pricing strategies. The legislation, which is gaining traction in Congress, is expected to attract bipartisan support aimed at ensuring ethical use of consumer data and AI technologies in various sectors, including airlines.
Experts have raised concerns about how other airlines might leverage technology and personal data, such as user location or device type, to implement differential pricing strategies that could be discriminatory.