DAL Stock Heads For Red Week: Delta CEO Says AI Fare-Shopping Agents Are On Its Radar As Holiday Travel Demand Holds Strong

• Delta CEO Ed Bastian said the airline is studying how to work with AI agents while safeguarding customer privacy. 
• Bastian said holiday travel demand remains strong as consumers prioritize experiences.
• Bastian said Delta has largely maintained its profit margins despite high oil prices. 

Delta Air Lines (DAL) stock is heading for a weekly loss as CEO Ed Bastian sounded cautious on AI-powered fare-shopping agents, even as the airline sees strong holiday travel demand. Bastian said Delta is monitoring the emerging technology while prioritizing customer privacy. 

Delta Air Lines stock edged 0.8% higher overnight, ahead of Friday. The stock is down 0.7% so far this week and is on track to snap a three-week winning streak. 

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Delta Takes Cautious Approach To AI Shopping Agents

In an interview with Bloomberg, Bastian said Delta has the technology to recognize when automated agents interact with its systems and can monitor their activity. 

“We watch what they're doing. If they're there to look for information about airfare for you maybe, you may have sent them looking for us. We'll respond in kind, but we're going to be very careful about making sure, first of all, customer privacy.” 

Rather than ruling out cooperation with AI-powered shopping tools, Delta wants to understand how they operate before deciding how to engage. “I know certain companies have taken kind of a bit of a black and white approach towards it. We're a bit more nuanced. We want to learn and understand what they're doing first,” Bastian said.

Though activity involving these agents is increasing quickly, Bastian said their current usage remains relatively small despite the attention they have received.

Delta Says Holiday Travel Demand Remains Strong

Looking ahead to the holiday season, Bastian said Delta continues to see the same strong travel appetite that has supported its business throughout the year.

“The demand is really strong. The investment consumers are making in their experience continues to be the top of their shopping list for the holidays,” said Bastian.  

“So the experience economy is alive and well. And yes, prices are higher, largely driven  by not just fuel prices, cost in general.”

Discussing the impact of high oil prices, Bastian said Delta has largely protected its profit despite the challenging cost environment.

“I'd say we are pretty close to having managed, speaking for Delta, our profits are down a little bit on a year over year basis, but we've largely held our margins at this point. And that's about, I think, all you can do with today's oil environment.” 

DAL Stock: Retail View

On Stocktwits, retail sentiment around the stock remained ‘bullish’. 

DAL stock has gained 24% year-to-date. 

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