FTC probes airline personalised pricing as solo fare gap emerges

The US Federal Trade Commission announced an inquiry on Wednesday into whether nine large companies, including Delta Air Lines, United Airlines and JetBlue, have used personal data to set different prices for different customers, according to The Points Guy. The move came in the same week as a Thrifty Traveler investigation finding that some US airlines charge solo travellers more per seat. One Mile at a Time listed the FTC investigation among the week's main travel stories.

What the FTC is examining

The Points Guy describes personalised pricing as setting one price for one customer and another for someone else, based on information held about them. The inquiry covers three of the largest US carriers: Delta Air Lines, United Airlines and JetBlue. It also extends to Uber, Lyft, Walmart, Target, DoorDash and Instacart.

According to the same report, the companies have been ordered to hand over details of their pricing practices, including whether prices can vary based on personal factors such as loyalty programme membership. An FTC official told The Points Guy that the agency is less concerned about personalised pricing itself than about its use without disclosure to consumers.

Airlines deny the practice

Airlines for America, the trade group for the largest US carriers, said in a statement on Friday that its members "do not engage in personalized pricing" and rely on market conditions and demand. The Points Guy notes that scrutiny has grown over the past year. Delta faced questions from lawmakers after executives said it had begun using a third-party AI tool to help set prices, though Delta said it was not using customers' private information to influence fares. A lawsuit last spring also accused JetBlue of using personal data to set fares, after a social media reply suggested a customer try clearing cookies or using incognito mode. JetBlue deleted the post and said the agent was mistaken.

Economists quoted by The Points Guy differ. Garrett Scott of the University of Mississippi said he was not convinced that individual search behaviour drives price changes, and that many tactics are benign. Mark Tremblay of the University of Nevada, Las Vegas, argued that some practices labelled dynamic pricing could amount to personalised pricing in disguise.

The solo traveller findings

Live and Let's Fly reports on a Thrifty Traveler analysis of 5,000 nonstop domestic one-way flights, with 1,000 sampled each from American Airlines, United, Delta, Alaska Airlines and Southwest Airlines. American charged solo passengers more on 33.5% of its sampled flights, and United on 10.6%. No such pricing was found on the Delta, Alaska or Southwest samples.

One example was a Miami to Charlotte flight quoted at $496 for one passenger but $155 each for two, so two tickets cost $186 less than one. Thrifty Traveler traced this to fare rules that require a travelling companion to qualify for certain cheaper fares. American did not respond to requests for comment and United declined to comment.

What this means for travellers

• The solo fare gap is a fare-rule issue, not evidence of personalised pricing, and the sources do not link it to the FTC inquiry.
• When booking for one, Live and Let's Fly suggests repeating the search for two passengers and comparing the per-person price for the same flight and fare product.
• Airlines say they do not use personal data to set fares, and the FTC inquiry has not yet reported any findings.
• Award discounts for Delta and United cardholders and targeted upgrade offers are openly advertised forms of differing prices.

It is not yet known what the FTC will request next or whether any action will follow.

Sources: The Points Guy; One Mile at a Time; Live and Let's Fly.