Have you ever arrived at the airport only to discover your flight was overbooked, forcing you to accept a later departure or even cancel your trip? While airlines describe overbooking as a standard practice to maximize efficiency, it frequently comes at passengers' expense. Knowing how overbooking works and what compensation you're entitled to is essential for every traveler.

Why Airlines Overbook Flights

At its core, overbooking is a revenue management strategy. Airlines routinely sell more tickets than available seats to account for no-show passengers who cancel last-minute or miss their flights. This practice helps carriers maintain high occupancy rates and profitability. However, when all ticketed passengers show up, the airline faces an overbooking situation that requires involuntary denied boarding.

Passenger Rights in Overbooking Situations

When flights are overbooked, airlines typically follow a standard procedure:

• First, they seek volunteers willing to give up their seats in exchange for compensation, which may include cash, travel vouchers, or other benefits.
• If insufficient volunteers come forward, airlines may involuntarily bump passengers according to their boarding priority rules.
• Passengers denied boarding against their will are entitled to compensation based on federal regulations.

Contrary to some claims about receiving up to 400% of the ticket price, actual compensation under U.S. Department of Transportation (DOT) rules depends primarily on the length of delay caused by the denied boarding. Current regulations cap maximum compensation at $1,350. The exact amount varies based on:

• The price of your ticket
• How quickly the airline can rebook you on another flight
• Whether the delay affects your final arrival time

The DOT periodically updates these compensation thresholds, so travelers should consult the latest official guidelines before flying.

Protecting Yourself as a Traveler

Knowledge remains the best defense against overbooking inconveniences. Before your next trip:

• Review your airline's contract of carriage for specific overbooking policies
• Check in early to reduce your chances of being bumped
• Understand that compensation rules differ for international flights
• Keep all travel documents and boarding passes as proof of your original reservation

While overbooking may benefit airlines financially, informed passengers can better navigate these situations and ensure they receive fair treatment when flights exceed capacity.