Is overbooking legal for airlines?

Is Overbooking Legal for Airlines?

Overbooking is a common practice employed by airlines to maximize revenue and minimize empty seats. While not inherently illegal, it is subject to specific regulations in different jurisdictions.

Overbooking in the United States

In the United States, overbooking is permitted by law. However, the Department of Transportation (DOT) has established regulations to protect passengers who are “bumped” from oversold flights.

DOT Regulations

According to DOT regulations, airlines must proactively offer compensation to passengers who are involuntarily denied boarding due to overbooking:

• Volunteers Preferred: Airlines typically request volunteers to give up their seats in exchange for compensation.
• Compensation: The amount of compensation offered varies depending on the length of the delay and the passenger’s destination.
• Arbitrary Bumping: If no volunteers are available, airlines may involuntarily bump passengers based on factors such as fare class, frequent flyer status, and check-in time. However, passengers who have disabilities or medical conditions may be exempt from being bumped.

Passenger Rights

Passengers who are bumped from overbooked flights have certain rights:

• Compensation: Passengers are entitled to compensation as outlined by DOT regulations.
• Alternative Transportation: Airlines must provide alternative transportation to the passenger’s destination within a reasonable timeframe.
• Reimbursement: Passengers are entitled to reimbursement for any pre-paid expenses, such as baggage fees or transportation to the airport.

Conclusion

While overbooking is not illegal in the United States, it is regulated to protect passenger rights. Airlines must offer compensation to passengers who are denied boarding due to overbooking. By understanding their rights, passengers can ensure that they are treated fairly in the event they are bumped from an overbooked flight.