Delta, United & JetBlue Face Federal Probe Over Using Passenger Data To Personalize Fares

Credit: Simple Flying Published Oct 31, 2026, 3:14 AM EDT Luke has over a decade of experience as a travel writer and aviation analyst. As a passionate traveler based across the Middle East and Asia, Luke offers strong insights into the industry. Based in South East Asia. Sign in to your Simple Flying account The US Federal Trade Commission (FTC) has ordered Delta Air Lines, United Airlines and JetBlue to explain how they set their ticket prices as part of an investigation into whether they use customers' personal data to charge personalized fares. US airlines have come under fire in recent months for increasingly turning to AI-powered pricing systems, leading to accusations of "surveillance pricing" by offering individually tailored fares. Although airlines have denied this, they now have 45 days to explain their pricing methods and disclose whether customer information plays any role in determining the fares passengers pay. Major US Airlines Face Airfare Pricing Investigation Credit: Wileydoc | Shutterstock The orders were issued under Section 6(b) of the FTC Act, which the agency says will enable it to "scrutinize the opaque methodology" that some companies use to charge their customers. The three carriers are among nine companies facing scrutiny, including ride-hailing firms Uber and Lyft, delivery platforms DoorDash and Instacart, and retailers Target and Walmart. The airlines have been told to explain any pricing methods that use customers' data and show if and how this affects final fares. Delta has received criticism for using a "dynamic pricing" tool in partnership with Israeli AI company Fetcherr, although it strenuously denies the tool uses personal data to determine prices. Meanwhile, JetBlue faces a class action lawsuit following a viral social media exchange, in which the airline advised a customer who had experienced a $230 fare increase to clear their cookies or book using an incognito window. The investigation covers more than just the base ticket price. It is also looking at how discounts and promotions are calculated, bringing paid upgrade offers and targeted fare sales into the picture. Loyalty program membership is also specifically mentioned, putting Delta SkyMiles, United MileagePlus and JetBlue TrueBlue under the spotlight. FTC Chairman Andrew Ferguson said: "Consumers deserve to know whether companies use their web surfing habits or other personal data to estimate the highest price they can charge each consumer." Delta And JetBlue Reject Claims Of Wrongdoing Credit: Markus Mainka | Shutterstock Delta has defended its partnership with Fetcherr. In a previous statement to Simple Flying, Delta said there are no fares it has ever used, is testing, or plans to use that "target customers with individualized prices based on personal data." According to Delta's EVP and Chief External Affairs Officer, Peter Carter, the AI tool receives only route-level demand and market information, while the fares Delta ultimately publishes do not take any customer's personal data into account. JetBlue has similarly rejected the allegations in its lawsuit, maintaining that its fares are determined by demand and seat availability and are the same for everyone booking through its website and app. Meanwhile, United has yet to publicly comment on the FTC order. American Airlines is noticeably absent from the FTC investigation. Its CEO, Robert Isom, said last year that using AI to determine fares was not "appropriate" and constituted a "bait-and-switch" approach. Isom added that the airline would not use AI systems to set or manipulate fares on an individual basis. What Penalties Would Airlines Face? Credit: Robin Guess | Shutterstock It is important to note that the FTC does not have any direct powers of enforcement over airlines if wrongdoing is found. Any action would fall under the jurisdiction of the US Department of Transportation (DOT), which has the authority to penalize unfair or deceptive practices by airlines and ticket agents. Transportation Secretary Sean Duffy has previously said that the DOT would "engage very strongly" if any airline used AI to individually price seats. However, Senator Ruben Gallego’s One Fair Price Act, introduced last December and under review by Congress, would ban surveillance pricing and give the FTC enforcement powers over airlines.