As airfare prices fluctuate more rapidly, passengers are starting to use AI to compete against AI. According to a Reuters report on October 30, U.S. airlines are using artificial intelligence to dynamically adjust pricing and increase ticket revenue. Meanwhile, startups like JetBack, Junova, and Refare are using AI to monitor purchased tickets for price drops and automatically claim refunds for passengers. This "cat-and-mouse game" surrounding ticket prices is becoming a new focal point at the intersection of the airline industry and technology.
Reuters reported that U.S. airlines are using AI to monitor competitors' fares and are testing applications to optimize pricing and improve flight operations. AJ Brustein, co-founder of Junova, described airline ticket prices as fluctuating "like the stock market," and that once prices fall, passengers have the opportunity to get a refund for the difference. Previously, WestJet, a Canadian airline, was also reported to be testing AI pricing tools. However, an analysis by Travel Distribution News on October 27th cautioned that such announcements are more like "statements of intent" and do not yet prove that the models' pricing effects and protective mechanisms are mature. At the same time, U.S. lawmakers have raised concerns about whether AI could be used to set "personalized prices" based on consumer data and behavior, thereby harming consumer interests.
According to Reuters, Bryan Dubno, founder of JetBack, stated that the company has recovered $2.4 million in refunds and credits for travelers since its launch in 2025, charging an annual fee of $100. Junova revealed that, out of the 10,000 flights monitored between September 2025 and July 2026, approximately 22% experienced at least one price drop after the tickets were purchased, with about 40% of those flights experiencing multiple price drops. The platform takes a 20% commission on the amount recovered. Refare charges a 25% commission and only charges when a successful recovery is made. The foundation for this business lies in the fact that, after the pandemic, most U.S. airlines eliminated change fees for non-refundable tickets. In 2019, U.S. airlines generated $2.84 billion in revenue from change and cancellation fees. With the elimination of these fees, the concept of "getting a refund for price differences" became operationally feasible.
This model heavily relies on airlines continuing to accept fare difference refunds. According to Reuters, Alaska Airlines stopped offering direct fare difference refunds through customer service channels in early October, instead guiding passengers to cancel and rebook tickets according to applicable fare rules. For its basic economy class, if canceled at least 14 days before departure, passengers only receive a voucher worth 50% of the ticket price. Refare founder Justin Dombrow expressed concern that if other airlines follow suit, "the door will be closed." However, Reuters also pointed out that most fare differences are refunded as vouchers rather than cash, and passengers still need to spend the voucher with the same airline, which may not necessarily be a net loss for the airline.
Let's connect a few dots: airlines are using AI to increase revenue, startups are using AI to help passengers find price differences, and regulators are keeping an eye on personalized pricing. AI-driven pricing has evolved from a behind-the-scenes tool into a public arena of competition. For industry observers, what's worth continuously monitoring isn't just the tools used by individual companies, but how the "pricing algorithm, change/cancellation policies, and consumer protection" are being reconnected. Alaska Airlines' tightening of its policies demonstrates that airlines have the power to rewrite the rules, while legislative developments may determine how far this new chain can extend.