By Doyinsola Oladipo
NEW YORK, Oct 30 (Reuters) – US airlines are turning to artificial intelligence to help maximize revenue from airfares. Now startups are putting AI to work on the other side of the transaction, helping passengers automatically claw back savings when ticket prices fall.
Companies including JetBack, Junova and Refare monitor fares after customers have booked and seek refunds or flight credits when prices drop. Their pitch is simple: airlines have spent decades building sophisticated pricing systems, while travelers have largely been left to check the prices themselves.
The services are emerging as airlines face scrutiny over how they use AI in pricing. While AI’s role in aviation continues to evolve, airlines are using the technology to monitor competitors’ fares while testing applications aimed at optimizing pricing and improving flight operations. The use of AI has garnered questions from lawmakers over whether the technology could harm consumers if it is used to set individualized pricing based on consumer data and behavior.
For travelers, the startups are exploiting a change that followed the COVID-19 pandemic, when many US airlines eliminated change fees on most non-refundable tickets as travelers grew hesitant to book travel amid testing requirements, quarantine rules and border closures. That means a passenger who buys a ticket for $500 may be able to claim the difference if the fare later falls to $400, without additional charges, though airline policies vary.
“Airlines have spent decades investing in incredibly sophisticated pricing technology, while consumers are still expected to do the equivalent of refreshing a webpage and crossing their fingers,” said Bryan Dubno, founder of JetBack, which says it has recovered $2.4 million in credits and refunds since launching in early 2025. “AI doesn’t have to be a one-sided advantage.”
Junova said that among 10,000 flights it monitored from September 2025 through July 2026, about 22% experienced at least one fare drop. About 40% of those saw prices decline more than once, illustrating how rapidly fares can change after a passenger has booked.
Airfares fluctuate like stock market prices, said AJ Brustein, Junova’s co-founder. “They go up and down, often up. But when it goes down, you have an opportunity to get that difference in price back.”
Junova and Refare charge customers only when they recover money, taking 20% and 25%, respectively, of the savings, while JetBack charges $100 a year.
AIRLINES CAN CHANGE THE RULES
The business model, however, depends heavily on airlines continuing to accommodate fare drops without imposing large penalties. The COVID-19 crisis weakened a revenue stream for US air carriers, which collected $2.84 billion in reservation cancellation or change fees in 2019.
Before the pandemic, change fees on many non-refundable tickets made recovering a modest fare decline impractical. The widespread elimination of those fees created an opening for companies that can continuously monitor prices and pursue credits on customers’ behalf.
That opening could close. In early October, Alaska Airlines stopped honoring fare drops through customer service, instead directing travelers seeking to capture a lower fare to cancel and rebook under the applicable fare rules.
Alaska said it does not charge cancellation fees for its main and first-class fares. But its basic economy tickets are eligible for a credit of 50% of the ticket value when canceled at least 14 days prior to departure.
“We’re fearful that we could be shut out if other airlines go that route,” said Justin Dombrow, founder of Refare.
Airlines may nevertheless have reason to tolerate the services. Many fare adjustments on non-refundable tickets are issued as credits rather than cash, requiring passengers to spend the money with the same carrier.
“Depending on how you look at it, the refunds are still a win for the airline,” Brustein said.
(Reporting by Doyinsola Oladipo in New York;Editing by Nick Zieminski)
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