Delta CEO Ed Bastian says AI could boost profits by 50% as airline tests AI-set fares on 3% of tickets

Delta Air Lines is betting big on artificial intelligence (AI) — and the technology could eventually change not just how the airline operates, but how much passengers pay to fly.

In a recent discussion, Delta CEO Ed Bastian said AI could ultimately improve the airline's profitability by as much as 50% , largely by helping the company make faster, smarter decisions and reduce costs. Bastian described the opportunity as potentially moving Delta's profit margin from around 10% to 15%, which would amount to billions of dollars.

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"When you think about what AI does, it allows you to hopefully make better decisions," he said on Scott McCartney's " Airlines Confidential " podcast. "And because you have more access to data, more timely, it gives you a clearer perspective of what the opportunities are. And our industry, our company, we have lots of decisions we have to make every day — whether it's how we're managing the daily operations or what's happening in the maintenance realm and with our engines and the history of the engines."

One particularly consequential part of Delta's AI strategy is airfare pricing.

Delta has already been testing AI to determine ticket prices, raising a question travelers may soon be asking: Could the price on the screen eventually be determined specifically for you?