American airlines use Artificial Intelligence to optimize ticket pricing
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Olhar Digital
olhardigital.com.br

American airlines use Artificial Intelligence to optimize ticket pricing

Airlines based in the United States are intensifying the use of artificial intelligence (AI) to monitor fares, assess competition, and refine the process of setting ticket prices. This technology has the potential to make fare adjustments more complex and help companies increase their revenue.

This technological advancement raises debates about the use of personal data and consumer habits to create personalized prices. American lawmakers have expressed concern about the implications of this approach for travelers.

Airlines already employ advanced systems to manage ticket costs. With the introduction of AI, they seek to expand their ability to analyze market data, track competitor pricing, and experiment with new applications in both pricing and operational management of flights.

The central purpose is to better capitalize on fluctuations in demand and general market conditions to determine the appropriate value for each ticket. Furthermore, the technology enables the adoption of more meticulous strategies that can take into account detailed information about consumer behavior.

It is precisely this possibility of individualized pricing based on personal data that causes apprehension among legislators in the United States. This raises questions about the ethical limits of this practice and its potential effects on passengers.

This discussion takes place against a backdrop of large investments by companies in tools capable of processing vast amounts of information to support their business decisions. As these systems become more sophisticated, scrutiny increases over the criteria used to set a ticket price.

Changes in fares do not only impact company tactics. The possibility of price variation after purchase has also spurred the emergence of services dedicated to monitoring tickets, aiming to identify savings opportunities for consumers.

Startups such as JetBack, Junova, and Refare use AI to track ticket prices and request the difference when a lower fare is detected. This practice has become viable because several American airlines suspended change fees for most non-refundable tickets during the Covid-19 pandemic.

For example, if a ticket purchased for US$ 500 (equivalent to R$ 2,625) is reduced to US$ 400 (R$ 2,100), the passenger may try to recover the difference of US$ 100 (R$ 525), following the airline's rules. However, the refund is not always in cash; compensation is often offered in the form of credit for a future purchase with the same airline.

Operational policies are also subject to changes. In early October, Alaska Airlines ceased handling fare adjustment requests through customer service, advising customers to cancel the ticket and make a new reservation according to the original ticket conditions. Thus, even if monitoring tools help passengers track fluctuations, it is the rules established by the airlines themselves that determine whether and how the difference can be recovered.

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Companies Cut AI Spending Due to Rising Operational Costs
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techcentral.co.za

Companies Cut AI Spending Due to Rising Operational Costs

According to a new global study, nearly nine out of ten organizations have either restricted or revised their artificial intelligence use cases. The reason for this is the increased cost of operating tools due to growing token consumption.

The report 'State of Enterprise AI 2026' by Cloudera is based on a survey of 1,500 IT department heads or higher conducted in September 2026. Only 19% of respondents regularly track costs for tokens and inference—the computational work required to run a trained model.

Although South Africa was not among the nine markets surveyed by Wakefield Research for Cloudera, a price comparison conducted by TechCentral shows changes in the cost of leading AI models for users from South Africa over the past two years, explaining why bills may be rising even if prices are decreasing.

Almost all respondents (99%) have taken measures in response to higher or unstable AI costs. Approximately 45% have moved workloads to another cloud, private environment, or on-premise platform, while 24% have suspended or canceled AI usage. Respondents from the EMEA region were most likely to report that the increase in token and inference costs exceeded expectations (44%), compared to 42% in the Asia-Pacific region and 39% in the Americas.

The problems are not only financial: 98% of companies have had to cancel a deployment at least once due to failures, hallucinations, or unexpected behavior.

Token pricing presents a mixed picture. The latest 'Instant' model, used in ChatGPT and offered to developers as chat-latest, costs $30 per million output tokens, which is double the $15 stated in OpenAI's documentation for its predecessor ChatGPT-4o. The GPT-6.1 Sol model, the second most expensive among OpenAI's flagship models, costs $10 per million output tokens, matching the $10 price set by OpenAI in August 2024 for GPT-4o.

Standard retail prices per million tokens: the Rand rate was 17.58 per dollar (average for October 2024) and 16.55 per dollar (average for October 1–23, 2026), according to US Treasury data. Prices for ChatGPT-4o and o1-preview are taken from OpenAI's documentation for these discontinued models. Gemini is excluded because Google's announcement of price reductions in September 2024 only contained percentage data.

Some 2024 models were more expensive than today's top options. OpenAI's reasoning model o1-preview was listed at $60 per million output tokens, and Claude 3 Opus at $75. GPT-6 Astra, the most expensive in OpenAI's flagship list, costs $50, as does Claude Fable 5.1, which shares the top of the price ladder with Anthropic's Claude Mythos 5.1. Anthropic's Sonnet line is 37% cheaper in Rand units.

A firmer Rand—the current average of $16.55 per dollar compared to the average of $17.58 per dollar in October 2024—has reduced dollar-denominated bills by almost 6%.

Oxera study shows airport fees have limited impact on European airfare costs
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uzdaily.uz

Oxera study shows airport fees have limited impact on European airfare costs

According to a study conducted by Oxera on behalf of Airports Council International Europe (ACI EUROPE), airport usage fees have only a minor and ambiguous influence on air ticket prices in Europe. Competition among airlines and airport congestion exert a much more significant impact on ticket costs.

The researchers analyzed over 62,000 data points covering nearly 6,000 European air routes. The results of this analysis, presented in the report 'What Really Drives Airfares' published in Brussels, covered 5,915 routes involving 54 European airports over four IATA seasons from 2023 to 2025, as reported by ACI EUROPE.

This study is being conducted against the backdrop of the European Commission's review of the EU Airport Fees Directive and slot allocation rules. Furthermore, slot allocation rules are also under discussion in the UK.

During the study, the impact of a 10% increase in each of the three factors on air ticket prices was compared. A 10% rise in airport fees was associated with only an average price increase of 0.35%. In contrast, a 10% increase in airport congestion led to a tariff increase of 0.93%, while a 10% concentration of airlines on a route was linked to a 1.06% increase.

The average pass-through coefficient of changes in airport fees to ticket prices is estimated at approximately 26%. Using some models, this effect from airport fees was not statistically significant.

According to the study, airport congestion allows airlines to benefit from what is known as a scarcity premium. This premium is estimated at 6.4 billion euros annually, equivalent to an average of 13.54 euros per one-way ticket at congested airports. ACI EUROPE noted that this phenomenon affects not only major hub airports like Heathrow in London but also airports across Europe with limited capacity.

The appearance of a new airline on a route was associated with an average fare decrease of 6.7%, while an airline exiting led to an increase of 9.7%. When competition is measured at the level of airline groups rather than individual brands, market concentration is on average 20% higher.

The study also found that tickets purchased 14 days before departure cost, on average, about 20% more than those bought 60 days in advance, even though airport fees remained unchanged during this period. Oxera calculated that if congestion and airline concentration at all sampled airports did not exceed their respective median levels, passengers could save about 19.5 euros on a one-way ticket. The total potential savings would be 8.2 billion euros per year, although the authors emphasized that this is an illustrative scenario, not a forecast.

ACI EUROPE CEO Olivier Janckovec stated that the results refute the claim that reducing airport fees benefits consumers. He noted: 'It is a convenient argument for airlines seeking to cut costs and protect their profits, but it does not withstand economic scrutiny. Airport fees influence which airports airlines choose, where they develop their route networks, and where they place capacity. However, there is no direct link between fees and fares. In other words, reducing airport fees simply does not lead to lower prices for passengers.'

In Janckovec's view, this study points to three interconnected priorities: strengthening competition among airlines, more efficient use of airport capacity, and attracting investment to meet future demand. He added that achieving these goals requires reforms in slot allocation rules in the EU and the UK. He also mentioned that this issue was raised more than two years ago in the Draghi report.

In support of the reforms, ACI EUROPE presented an updated position on airport slots. The organization proposes tightening rules for new market entrants to ensure effective competition. It also advocates for more efficient use of scarce airport capacity and greater transparency in slot allocation. Another proposal is to give airports more influence over how their capacity is distributed, taking into account the needs of local communities. The document clarifies that the figures provided represent average estimates from the study sample and should not be considered forecasts for individual routes. The policy recommendations reflect ACI EUROPE's interpretation of the results.

The future of AI will be determined by a combination of various models, not one dominant technology
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olhardigital.com.br

The future of AI will be determined by a combination of various models, not one dominant technology

In recent years, the development of artificial intelligence has been perceived as a technological race, where after each launch, new comparisons, benchmark tables, and predictions emerged about which company was approaching leadership in the next major digital transformation. It often seemed that the entire debate boiled down to one question: which model is the best at the moment?

However, after a recent immersion in Silicon Valley, the author got the feeling that this question, while still relevant, is no longer central. Part of this understanding stems from the fact that he visited Silicon Valley almost ten years after his first visit.

There is something interesting about immersing oneself in an ecosystem that unites some of the world's most influential companies, investors, and universities. Just as when traveling to any culture, we begin to absorb local peculiarities, in the US, especially in California, you inevitably become influenced by the speed of releases, technology consumption, and the constant feeling that the future is being built there.

Something similar is happening in Silicon Valley: there is a natural tendency to focus on themes dominating regional conversations and consider them an accurate reflection of the coming years. This often has a basis, as many significant technological changes of the last few decades took place there before reaching the rest of the world.

But any highly connected environment carries a risk: the risk of confusing consensus with absolute certainty. This is what attracted the most attention during the trip.

Unlike most public discussions about AI, few conversations revolved around competition between models or the search for the next technological leap capable of changing the market. A more frequent topic was how artificial intelligence is integrating into the products, processes, and operations of organizations, rather than which laboratory owns the most advanced system at the moment.

This shift in focus manifested differently throughout the week. Discussions with executives from Snowflake and Elementum, for example, were not about which model ranks highest or which company would release the next big thing. The discussion was focused on the transformation of enterprise software. The general consensus was that a phase is beginning where intelligent agents start interacting directly with large volumes of data, performing tasks that previously required manual navigation through systems, report analysis, and making several operational decisions by a human.

For decades, most enterprise software was created to organize information and facilitate human labor. Now, there is an expectation that these systems will not just present information but also act upon it. This may be one of the most important changes brought about by AI. The impact is not only in the technology itself but also in how companies begin to function. For the first time in many years, the discussion seems less related to the tool being used and more to the ability to quickly, integratively, and efficiently turn data into action.

At the same time, some visits showed that not everyone follows the exact same path. For instance, at Liquid AI, there was a viewpoint contrasting with most popular narratives in the sector. While a large part of the industry continues to bet on ever-larger models and ever-more powerful infrastructure, this company is developing more compact systems designed for local operation on devices such as mobile phones, vehicles, and onboard equipment.

The interest in this concept is not just in the technology itself. It reminds us that innovation does not happen in one direction. There is a natural inclination to link technological progress with increased computational power, investment, and model size. However, in many cases, the task is precisely the opposite: creating more efficient, accessible, and easily integrated solutions into people's daily lives and businesses.

Perhaps this was one of the main lessons of the trip. When we look at the AI market from afar, it seems like there is one race going on. But when we look closely, we realize that many different races are happening simultaneously. There are large generative models; there are specialized systems; there are multimodal applications combining text, image, audio, and video; there are enterprise solutions designed to solve very specific problems; and there are companies betting on making all of this easier and more distributed.

Therefore, the idea that the market will move towards one dominant technology is becoming less likely. A scenario of coexistence of different approaches is emerging, each suited for specific contexts, constraints, and needs.

This shift is also changing how organizations approach technology strategy. For a long time, the logic was relatively simple: find the best available tool and implement it. With the advent of AI, the equation includes a number of other variables. Issues of integration, governance, privacy, speed of adoption, operational costs, and business compliance are becoming as important as the complexity of the chosen technology.

In practice, a company may gain much greater value from a simple, well-integrated solution in its processes than from using extremely advanced technology in isolation. Perhaps this is why the discussion of implementation is taking up more space than the discussion of capabilities.

Another aspect that caught attention was the frequent turning of technological conversations into conversations about people. This became particularly evident during the visit to Stanford. Despite the university being in one of the most advanced ecosystems in the world for AI, a significant part of the discussions remained focused on topics such as education, talent development, shaping organizational culture, and leadership development.

This does not seem coincidental. The history of Silicon Valley has never been exclusively a story about technology. It has always been deeply connected to the ability to transform knowledge into innovation. Tools change. Platforms change. Companies appear and disappear. But preparing people who can learn, adapt, and create remains a constant element.

This point becomes even more relevant as AI becomes accessible to more and more organizations. Access to the technology, naturally, tends toward democratization. Knowledge of how to use it strategically, however, remains a difficult-to-replicate advantage.

The systematic implementation of AI requires much more than just hiring a platform or providing new resources to teams. It requires rethinking processes, developing competencies, revising workflows, creating oversight mechanisms, and preparing people to work in an environment where part of the analysis, decision-making, and execution is supported by intelligent systems.

Therefore, the main takeaway the author had after this experience is not about which company will lead the AI race or which model will become the standard in the coming years. The feeling is that we are leaving the phase where the center of discussion was isolated technology and entering a stage much more focused on practical application. The next phase of AI will not be defined by one revolutionary model replacing all others. It will be built on a combination of various technologies, the ability to integrate them into existing processes, and most importantly, the ability of organizations to turn these capabilities into tangible results.

Ultimately, artificial intelligence remains a technological topic. But after so many conversations during the trip, it is hard not to conclude that it is increasingly turning into a discussion of strategy, execution, and organizational adaptation. Perhaps this is why the most important question is no longer who possesses the most advanced AI. The question that seems to be gaining more importance is another: who will be able to use it better.

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