As U.S. airlines deploy AI-powered pricing tools, startups are helping travelers benefit from falling fares.

New York, October 30 (Reuters) — U.S. airlines are turning to artificial intelligence to help maximize revenue from ticket sales. Now, a number of startups are applying AI to the other side of the transaction, helping passengers automatically save money when airfares drop.
Companies such as JetBack, Junova, and Refare monitor ticket prices after a customer has made a booking, seeking refunds or travel vouchers whenever fares decrease. The concept is simple: while airlines have spent decades building sophisticated pricing systems, travelers have largely been left to track prices on their own.

These services have emerged as airlines face increasing scrutiny over their use of artificial intelligence in pricing. While the role of AI in the aviation sector continues to evolve, airlines are leveraging the technology to monitor competitors’ fares and test applications designed to optimize pricing and improve flight operations. The use of AI has prompted questions from lawmakers: could the deployment of AI to set personalized prices—based on consumer data and behavior—harm the interests of consumers?

For travelers, these startups are capitalizing on a shift that took hold in the wake of the COVID-19 pandemic. During the pandemic, factors such as testing requirements, quarantine mandates, and border closures made travelers hesitant to book trips; in response, many U.S. airlines eliminated change fees for most non-refundable tickets. This means that if a passenger purchases a ticket for $500 and the fare subsequently drops to $400, they may be able to claim a refund for the price difference at no extra cost—though specific policies vary by airline.

“For decades, airlines have invested in incredibly sophisticated pricing technologies, while consumers have been left to wait passively—essentially just refreshing web pages and hoping for the best,” says Brian Dubno, founder of JetBack. Since its launch in early 2025, JetBack has helped users recover $2.4 million in points and refunds. “Artificial intelligence doesn’t have to be an advantage that only works in one direction.”

According to Junova, among 10,000 flights monitored between September 2025 and July 2026, approximately 22% saw at least one price drop. About 40% of those flights experienced multiple price decreases—a testament to how rapidly airfares can shift even after a passenger has already booked.
AJ Brustein, co-founder of Junova, notes that airline ticket prices fluctuate much like stocks. “They go up and down—and, more often than not, they go up. But when the price does drop, you have an opportunity to recoup the difference.”

Junova and Refare only charge clients when they successfully recover funds—taking 20% ​​and 25% of the recovered amount, respectively—whereas JetBack charges an annual fee of $100.

Airlines Can Change the Rules
However, this business model relies heavily on airlines continuing to accommodate price drops without imposing steep penalties. The COVID-19 crisis eroded a significant revenue stream for U.S. airlines; in 2019, they collected $2.84 billion in fees for booking cancellations or changes.
Before the pandemic, the change fees attached to many non-refundable tickets made it difficult to recoup losses, even when fares dropped slightly. The widespread elimination of these fees created an opening for companies that monitor airfares on an ongoing basis and secure refunds on behalf of their clients.
This opportunity could disappear. In early October, Alaska Airlines (ALK.N) stopped honoring price-drop adjustments through its customer service channels. Instead, it now directs travelers seeking a lower fare to cancel their existing booking and rebook—subject to the applicable fare rules.

Alaska Airlines states that it does not charge cancellation fees for its standard or first-class tickets. However, for economy-class tickets, a 50% refund of the fare is provided if the cancellation is made at least 14 days before departure.
“We’re concerned that if other airlines adopt this practice, we might be left out,” says Justin Dobro, founder of Refare.
Nevertheless, airlines may have reason to tolerate such services. In many cases, adjustments to non-refundable tickets are issued as vouchers rather than cash, meaning passengers are required to spend those funds with the same airline.
“In a way, providing refunds can still be a good thing for airlines,” says Bluestein.