Why do airlines purposely overbook?

The short answer to this is economics: airlines want to make sure that every flight is as full as possible to maximize their profits. The reported reason why airlines routinely oversell their seats is to recover costs the airline incurs for seat cancellations and for travelers who do not show up to take the flight.



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While it is legal for airlines to involuntarily bump passengers from an oversold flight when there are not enough volunteers, it is the airline's responsibility to determine its own fair boarding priorities.

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Sometimes, when an airline asks for volunteers to give up their seats and fly on a different flight, there are not enough volunteers. When this occurs, the airline will select passengers to give up their seats. This is called “involuntary denied boarding” or “bumping.”

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Some of the factors that airlines consider when deciding who gets bumped include check-in time, fare paid by the passenger, and frequent flyer status. It is important to note that these criteria must not be used in a way that prejudices or disadvantages any passenger unjustly or unreasonably.

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Overbooked flight compensation under US regulations
If the airline does not make any substitute travel arrangements for you, you are entitled to 400% of the one-way fare price, not to exceed $1,350 as well as any optional fees paid as part of your reservation (e.g. bag fees, seat upgrades, etc.).

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Moreover, every airline in the United States overbooks its flights at least some of the time. All but one, that is. JetBlue Airways (JBLU -1.22%) is the one holdout that chooses not to overbook its flights -- to be more customer-friendly.

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Frontier Airlines bumped the biggest proportion of passengers of the 15 largest US carriers in early 2023. Of every 10,000 Frontier passengers, 3.73 were involuntarily denied boarding due to oversales, the DOT said. Allegiant, Delta, Endeavor, and Hawaiian didn't bump any passengers in the quarter, per the DOT.

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When you are involuntarily bumped from a flight, you can get cash (a check or credit on your credit card) from airlines. Overbooking is not illegal, and most airlines overbook their scheduled flights to a certain extent to compensate for “no-shows.” Passengers are sometimes left behind or “bumped” from a flight.

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Here's a look at American carriers, starting with the worst for overbooking and descending to the best:
  • Spirit Airlines — 78 IDBs per million passengers.
  • Frontier Airlines — 55.
  • Southwest Airlines — 41.
  • Alaska Airlines — 28.
  • American Airlines — 24.
  • United Airlines — 13.
  • Delta Air Lines — 3.
  • JetBlue Airways — 2.


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Whether you're flying from New York or New Orleans, Lisbon or London, airlines continue overbooking to compensate for “no-shows” all the time. Simply put, they sell more tickets than they have available seats. And it's not an illegal practice.

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If your flight is overbooked you can choose between an alternative transport or you can opt not to fly at all and to receive a refund for the price of your ticket.

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Travelers get bumped from flights because airlines sell more tickets than they have seats on the plane. That's called overbooking, and it sounds like a scam, but there's no law against it.

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Airlines can sell more seats than they have available – as they assume that not all passengers will show up for the flight. If all passengers do show up, some may be denied boarding or “bumped” off the flight.

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Passengers can inquire about overbooking by contacting their respective airlines or using apps that show available seats per cabin. If your flight is overbooked, airlines will usually ask for volunteers to give up their seats and offer compensation in return.

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Where does Janet Airlines go? Janet flights fly out of Harry Reid International Airport in Las Vegas, Nevada, from a terminal and parking lot dedicated to the highly classified airline.

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Approach and landing is the highest risk phase of flight, accounting for over 50 percent of all accidents at every level of aviation.

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Get excited. Seriously. In recent years, Delta has not been afraid to oversell its flights. It bumps more than twice as many people per enplanement than American or United.

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Bottom line. Overselling flights is a commonly accepted practice in the airline industry. While airlines have good data and get things right most of the time, this does sometimes lead to overbooking situations, where some people need to be removed from flights.

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It's 400% for over four hour arrival delays with the same $1,550 limit. These are the amounts airlines must pay by law. They can pay more if they choose to. Airlines must offer the compensation at the airport on the same day.

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So the airline has offered you a voucher, which is perfectly legal, but you'd rather just have the cash. You'll need to proactively ask your airline for a cash refund in writing. The same goes for if you've booked through an online travel agency like Expedia. They are also covered under DoT rules.

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