Each day, an airline transports tens of thousands of passengers on hundreds of flights, often requiring multiple connections. Pricing each journey involves considering hundreds of variables including demand, season, time of day, current events, global markets, and competitor activity. This nuanced process must constantly adapt to real-world changes.

Generative AI-powered market models are emerging to handle complex tasks like this in real time. These deep learning models analyze high-resolution numerical data to simulate and predict complex financial dynamics. Rather than relying on historical trends or static rules, the market model acts as an AI 'brain,' consolidating data to simulate different market environments and make dynamic commercial decisions.

'It helps us make better, faster, more granular commercial decisions,' says Dominic Kennedy, senior vice president at Virgin Atlantic. 'It considers, on a real-time basis, a plethora of different inputs... It has a really sophisticated way of evaluating our positioning relative to competitors,' he adds.

These models enable airlines to optimize pricing, inventory, and revenue management strategies across dynamic market conditions.