Denied Boarding Compensation: What Are You Entitled To?

Denied Boarding Compensation: What Are You Entitled To?

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Most airlines oversell flights, and sometimes this leads to airlines having to bump passengers. This can come in two forms — voluntary and involuntary denied boarding. I wanted to take a look at that topic more broadly in this post, and specifically talk about what compensation you’re due in the event that you’re involuntarily denied boarding from a flight.

Why do airlines oversell flights?

Airlines use complicated models to decide how many seats to sell on a particular flight. However, almost across the board, they’ll sell more seats than actually exist on a plane. Why? Because they know that typically some passengers won’t make the flight.

Some passengers may show up to the airport too late, while other passengers might cancel their tickets last minute, while other passengers may miss their connection due to flight delays. They have incredibly complex models, and most of the time they work out perfectly. However, airlines aren’t going to get stuff right all the time, and as a result there are occasionally situations where more passengers have checked in than the plane has seats.

Sometimes airlines even sell seats when they know it’s likely that they’ll need to bump people. Why? Because they’d rather take cash for an expensive, last minute ticket, and then give someone an airline credit for taking a different flight.

There are also a few other possible reasons for a flight being overbooked. For example, it could be that an airline has to transport crews somewhere as a priority to work another flight, or that a flight is weight restricted due to weather, cargo, etc.

Passengers are typically bumped from a flight in one of two ways — voluntarily or involuntarily.

Airlines frequently oversell flights

How does a voluntary denied boarding work?

When an airline knows that a flight is likely to be oversold, staff are required to first solicit volunteers. Sometimes airlines will ask at check-in, and other times they’ll ask at the gate. When it comes to a voluntary denied boarding, there are no regulations as to what you get.

A voluntary denied boarding is a win-win, since someone is getting something in return for taking a different flight, and everyone is happy. It’s a negotiation process, and compensation typically comes in the form of a voucher from the airline (though nowadays Delta sometimes gives out gift cards that can be used as debit cards).

If you’re having to overnight in a city as a result of this, the airline will typically give you a hotel room as well.

I’d say the average compensation is for an airline credit in the range of $200 to $1,000. How high the offer goes depends on how long you’ll be delayed, how many other people are interested in the bump, how badly the airline is oversold, etc.

So it’s not unusual for a gate agent to first make a low offer, see if anyone accepts it, and then go higher if people don’t. Nowadays gate agents have a bit more latitude to ensure that they’re minimizing involuntary denied boarding, and we’ve even seen some stories of Delta going as high as $10,000 in compensation, in some really extreme situations. Many frequent flyers will seek out bumps, given that they can be quite lucrative.

Delta is often the most generous with denied boarding compensation

How does an involuntary denied boarding work?

When airlines can’t find volunteers and still have more passengers than seats, they need to involuntarily deny people boarding. Airline have clauses in their contracts of carriage allowing them to do this. Furthermore, airlines all have procedures they use for determining who gets bumped. Some airlines bump the people who don’t have seat assignments. Other airlines decide based on who checked in last. Others decide based on status and the booking class you have.

Do note that the number of passengers being involuntarily denied boarding is very low, and it’s generally well under one person for every 10,000 seats.

If you’re involuntarily denied boarding, the Department of Transportation regulates what you’re entitled to. Here are the rules, as published by the DOT:

  • If you are bumped involuntarily and the airline arranges substitute transportation that is scheduled to get you to your final destination (including later connections) within one hour of your original scheduled arrival time, there is no compensation
  • If the airline arranges substitute transportation that is scheduled to arrive at your destination between one and two hours after your original arrival time (between one and four hours on international flights), the airline must pay you an amount equal to 200% of your one-way fare to your final destination that day, with a $775 maximum
  • If the substitute transportation is scheduled to get you to your destination more than two hours later (four hours internationally), or if the airline does not make any substitute travel arrangements for you, the compensation doubles (400% of your one-way fare, $1,550 maximum)
  • If your ticket does not show a fare (for example, a frequent flyer award ticket or a ticket issued by a consolidator), your denied boarding compensation is based on the lowest cash, check or credit card payment charged for a ticket in the same class of service (e.g., coach, first class) on that flight
  • You always get to keep your original ticket and use it on another flight; if you choose to make your own arrangements, you can request an “involuntary refund” for the ticket for the flight you were bumped from, and the denied boarding compensation is essentially a payment for your inconvenience
  • If you paid for optional services on your original flight (e.g., seat selection, checked baggage) and you did not receive those services on your substitute flight or were required to pay a second time, the airline that bumped you must refund those payments to you

Let me just emphasize that the cash compensation applies specifically to situations where you’re involuntarily denied boarding due to an oversell situation. This wouldn’t apply if you simply misconnect, if you arrive at your gate too late, etc.

I should also mention that if you are involuntarily denied boarding, gate agents will often just try to give you a voucher, unless you explicitly ask for the cash compensation. Now, in some cases passengers may prefer a voucher, like if your ticket was very cheap, and the voucher is for a significantly larger value. But you at least have the option of receiving cash.

Receive cash when involuntarily denied boarding from a flight

Bottom line

Passengers are entitled to cash compensation in the event of an involuntary denied boarding. In the United States, this compensation can range from 200-400% of your one-way cash fare, up to a certain limit. The catch is that many airlines won’t even offer that compensation unless you specifically ask, and will instead try to give you a voucher.

Hopefully you don’t end up in a situation where you’re involuntarily denied boarding, but if you are, at least know what you’re entitled to.

Have any OMAAT readers been involuntarily denied boarding from a flight?

Conversations (12)
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  1. Lia Benson Guest

    I was made to get off the plane because they said that I was intoxicated when I wasn't, yet they had a flight set up for me for the next day without any help and without any testing that I asked them to do. I'd been up for over 24 hours and then 48 hours with no food, or water because everything was in my luggage. The flight was full, and they wanted to put...

    I was made to get off the plane because they said that I was intoxicated when I wasn't, yet they had a flight set up for me for the next day without any help and without any testing that I asked them to do. I'd been up for over 24 hours and then 48 hours with no food, or water because everything was in my luggage. The flight was full, and they wanted to put me in the back economy seating when I purchased comfort plus. They're so rude and I believe that was why they'd flexed their muscles. The man who looks at your ticket was rude and, I'd made a comment about it and continued on to the plane where out of nowhere I was asked to move to the back and then escorted off the flight without telling me what they're doing. I know this because years ago I was flying and while waiting for hours, I had gotten intoxicated and made a stupid remark about, I hope that the pilot is not under the influence like me. They made me get off and put me up in a hotel right there I'm a very nervous flyer, and felt awful for what I had said. But this's nothing like that. I'm afraid to fly anywhere anymore. To know that for any reason you can be denied your seat or treated as such has made it even worse for me. If anyone has any suggestions on what I can do to get compensated or get this guy fired. I'd greatly appreciate it. Any help from anyone would be greatly appreciated. I'm just now starting to feel less anxious about the drama that happened to me even though nobody would have known until I was told that they'd rebook me and then told me for being intoxicated.

  2. CommonSense Guest

    Exactly how does the airline fraudulently selling seats that don't exist and then paying people not to get on the plane save or make them more money? Any other business who sold something they know full well they don't have to offer would be shit down, but then again the airlines get away with far worse on a daily basis. This is what happens when the government is made of greedy rich people who will...

    Exactly how does the airline fraudulently selling seats that don't exist and then paying people not to get on the plane save or make them more money? Any other business who sold something they know full well they don't have to offer would be shit down, but then again the airlines get away with far worse on a daily basis. This is what happens when the government is made of greedy rich people who will turn a blind eye to the illegal practices of any business who lines their pockets personally.

  3. iamhere Guest

    It does not seem like the amounts they are offering has changed in many years or adjusted for inflation. Years ago, I received $1000+ voluntary.

  4. Stan P Guest

    Last May , 6 days before my scheduled flight CNY-SLC , I was called and offered by Delta 700$ or 70 000 miles if I would take the next day flight . I was between two other flights at that moment and said no. Once I settled in that night I checked if I could change my next flight SLC-JFK-ACK ( booked on points ) with B6 for the same price , booked same flight...

    Last May , 6 days before my scheduled flight CNY-SLC , I was called and offered by Delta 700$ or 70 000 miles if I would take the next day flight . I was between two other flights at that moment and said no. Once I settled in that night I checked if I could change my next flight SLC-JFK-ACK ( booked on points ) with B6 for the same price , booked same flight for the next day and then I called Delta the morning to ask if the offer is still in the table .They said yes and changed my 79$ flight for the next day and I grabbed 70 000$ miles . Did not ask for covering the hotel accommodation, but was happy to hike in more national park …

  5. SBS Guest

    Along with quite a few other people, I volunteered to give up my seat on a Delta ATL-ICN flight last November. As Ben mentioned, we all got reasonable compensation in the form of gift cards, which is where the good part of the story ends. As far as overnight hotels and rebooking connections on partner airlines, the gate agents would promise you anything to convince you to give up your seat, then once your seat...

    Along with quite a few other people, I volunteered to give up my seat on a Delta ATL-ICN flight last November. As Ben mentioned, we all got reasonable compensation in the form of gift cards, which is where the good part of the story ends. As far as overnight hotels and rebooking connections on partner airlines, the gate agents would promise you anything to convince you to give up your seat, then once your seat is gone, all those promises would suddenly disappear.

    This was a midnight flight, so we were all given electronic hotel vouchers, I think for the Hilton, after which time the gate agents literally ran away from the gate. Turned out that specific hotel had no rooms available, and they have told Delta earlier in the evening to stop issuing vouchers. My new flight was an noon the next day, so I payed for the last remaining room at the Holiday Inn. Other people with morning flights just slept at the airport.

    I also had a business class connection from ICN to Guam on Korean on the same ticket, and was promised a business class connection on the new flight. But as soon as my original flights were cancelled, that connection turned into economy, even though Korean were still selling business class seat for that flight.

  6. Creditcrunch Diamond

    In my experience IVDB are not common place, I’ve never been approached on my own paid for flights but it happens a lot on my work booked flights. I am booked on travel warrants and there is some interline agreement with airlines and government booked fares whereby if they have oversold they will rebook on the next flight or if no available seats they begin the process of checking all airlines and indirect routing options....

    In my experience IVDB are not common place, I’ve never been approached on my own paid for flights but it happens a lot on my work booked flights. I am booked on travel warrants and there is some interline agreement with airlines and government booked fares whereby if they have oversold they will rebook on the next flight or if no available seats they begin the process of checking all airlines and indirect routing options. Unfortunately (quite rightly) there is no financial compensation or offer of hotels etc.

  7. George Romey Guest

    IVDB is very, very rare. In my 25 years of heavy flying I think I've seen it twice. Even VDBs are becoming rare as airlines have invested in software that allow them to oversell seats without the need to ask and pay for volunteers to be bumped. The last time I volunteered and actually was needed was about four years ago.

    1. Michael Guest

      Sometimes I've seen when checking in, the airline has had the option to "bid for a bump" if there was the danger of an overbook. Basically they're doing the whole thing behind the scenes, rather than making the gate announcements of old. It makes a lot of sense to me. It cuts down on the announcements and workload, and the airline might get off cheap if someone underbids the normal going rate.

  8. Charles Guest

    Some countries (Like the USA) have excellent consumer laws. Some airlines (example Ethiopian Airlines) handle situations differently based on what those consumer laws are. The bottom line is, were an airline can bully you, they generally do, with a few exceptions.

    1. Sean M. Diamond

      Ethiopian is pretty good at handling denied boarding situations in my experience. I've received significant vouchers from them multiple times for volunteering my seat, including overnight accomodations at the Hilton or Radisson in Addis.

    2. Laya Benson Guest

      Do you have any suggestions for me being taken off the plane, I had no idea what they're doing until, I was off and the gate was closed. Then they said that I was intoxicated when I wasn't, and asked for a test like what they do to someone who is driving while drinking, but they wouldn't they said that they couldn't. Many police around the airport, I saw them afterwards on bikes. I'm sorry,...

      Do you have any suggestions for me being taken off the plane, I had no idea what they're doing until, I was off and the gate was closed. Then they said that I was intoxicated when I wasn't, and asked for a test like what they do to someone who is driving while drinking, but they wouldn't they said that they couldn't. Many police around the airport, I saw them afterwards on bikes. I'm sorry, I just wanted to check with you and see if you had any thoughts on what I could do. Thanks for your help
      Laya Benson

  9. Sean M. Diamond

    The last time I was IDB'd was on a domestic flight in Tanzania. It was the last flight of the evening and it seems a safari group had missed an earlier flight and because their tour organiser was a big corporate customer, they got rebooked to our flight and the airline decided to just bump 5 confirmed passengers instead.

    Zero compensation. Just told to go away and come back tomorrow when we could standby for...

    The last time I was IDB'd was on a domestic flight in Tanzania. It was the last flight of the evening and it seems a safari group had missed an earlier flight and because their tour organiser was a big corporate customer, they got rebooked to our flight and the airline decided to just bump 5 confirmed passengers instead.

    Zero compensation. Just told to go away and come back tomorrow when we could standby for another flight (not even confirmed). After a bit of argument they agreed to provide hotel accomodations, which was at a reasonably decent resort nearby. Finally got rebooked on a flight the next morning.

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Sean M. Diamond

The last time I was IDB'd was on a domestic flight in Tanzania. It was the last flight of the evening and it seems a safari group had missed an earlier flight and because their tour organiser was a big corporate customer, they got rebooked to our flight and the airline decided to just bump 5 confirmed passengers instead. Zero compensation. Just told to go away and come back tomorrow when we could standby for another flight (not even confirmed). After a bit of argument they agreed to provide hotel accomodations, which was at a reasonably decent resort nearby. Finally got rebooked on a flight the next morning.

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Stan P Guest

Last May , 6 days before my scheduled flight CNY-SLC , I was called and offered by Delta 700$ or 70 000 miles if I would take the next day flight . I was between two other flights at that moment and said no. Once I settled in that night I checked if I could change my next flight SLC-JFK-ACK ( booked on points ) with B6 for the same price , booked same flight for the next day and then I called Delta the morning to ask if the offer is still in the table .They said yes and changed my 79$ flight for the next day and I grabbed 70 000$ miles . Did not ask for covering the hotel accommodation, but was happy to hike in more national park …

1
Sean M. Diamond

Ethiopian is pretty good at handling denied boarding situations in my experience. I've received significant vouchers from them multiple times for volunteering my seat, including overnight accomodations at the Hilton or Radisson in Addis.

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