Overbooked Flight Compensation: Know Your Passenger Rights

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Have you ever been bumped off a flight because it was overbooked? You may be entitled to significant compensation — and understanding your rights is the key to claiming it.

Airlines routinely overbook flights to minimize revenue loss, which can leave passengers stranded. 

While airlines usually offer vouchers as compensation, you’re actually owed cash (or a check) for the inconvenience, depending on the delay length.

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Why Do Airlines Overbook Flights?

It seems like a no-brainer: Airlines should only sell the number of seats that they have. 

But the reality is airlines overbook on purpose as part of their business model. 

The good news is you have rights and could receive compensation — if you understand how it works.

The business of overbooking

Even though it seems counter-intuitive, airlines often sell more tickets than seats available. This is designed to account for no-shows. If someone doesn’t show up, they can still put someone else in that seat — and they’ve been paid double for it.

While this practice is profitable for airlines, it inconveniences passengers. If everyone who bought a ticket shows up and there aren’t enough seats, then someone is getting bumped. 

You might miss your connecting flight or be significantly delayed to your destination. Getting bumped from a flight can be a massive inconvenience!

Your rights when flights are overbooked 

In the U.S., compensation applies only when you are involuntarily denied boarding. This means you haven’t volunteered to give up your seat, and have been bumped without your consent.

How much you’re entitled to depends on the length of the delay. The longer the delay, the higher your potential compensation.

For example, if the airline provides an alternative way to get you to your destination and you arrive within one hour of your originally scheduled time, you aren’t entitled to compensation. 

However, if getting bumped due to overbooking results in a delay of more than two hours (or four hours for an international flight), you might be entitled to up to $1,550:

Arrival delay (domestic)	Arrival delay (international)	Compensation
Within 1 hour of your original scheduled arrival time	Within one hour of your original scheduled arrival time	$0
Between 1 and 2 hours after your original scheduled arrival time	Between 1 and 4 hours after your original scheduled arrival time	200% of your one-way fare or $775, whichever is lower
More than 2 hours after your original scheduled arrival time	More than 4 hours after your original scheduled arrival time	400% of your one-way fare or $1,550, whichever amount is lower

Compensation for European flights depends on flight distance and starts at €250. And you’re entitled to compensation even if the delay doesn’t result in a substantial difference in your arrival time.

Steps To Take If You’re Bumped Off a Flight

If you’re denied boarding due to overbooking, there are some steps you can take to make sure you get the compensation you’re entitled to. 

You might also be able to file a claim with your travel insurance to recoup some of your losses.

Understand your options at the gate

When airlines request volunteers to give up their seats, weigh the value of travel vouchers, upgrades, or perks alongside the compensation required by the government.

Ask for details about compensation and rebooking. Airlines must provide you with details in writing. 

Be sure to keep the information for your records so that you can claim your compensation.

Know your compensation rights 

When you understand how much you could receive, you can better choose whether to accept a travel voucher to volunteer for rebooking. 

In the U.S., compensation is usually based on the length of the delay:

• When the airline provides you with an alternate way to get to your destination, and you’ll get there between one and two hours late (or four hours internationally), the airline must provide 200% of the one-way fare or $775, whichever is lower.
• If you’re more than two hours late (or four hours late internationally), the airline should pay you 400% of the one-way fare you paid, or $1,550, whichever is lower.
• Refunds are required if you don’t get services you paid for on your substitute flight. For example, if you paid for seat selection and checked a bag, and the airline makes you pay again, you should be refunded your original cost.
• If you’re involuntarily bumped, you have the right to demand cash or a check instead of a voucher.

An important note: You aren’t entitled to this compensation if you take the airline’s deal and agree to be bumped. 

Additionally, you won't receive compensation if the airline gets you there within an hour of your scheduled arrival time. 

The European Union has fixed compensation for overbooked flights, starting at €250. You might get additional compensation based on delay times and other costs and inconveniences that arise.

RELATED: Flight Delay Compensation: What You’re Entitled to and How To Get It

Save receipts and document your experience

Keep records of any additional expenses you incur due to being bumped. This includes meals, hotels, and alternate transportation. Depending on the airline, you may be reimbursed for some of these expenses. 

If not, you might be able to turn to your travel insurance coverage.

While travel insurance won’t cover your cash compensation amount (since the airline is responsible), you may be able to claim costs for accommodations or other transportation, based on your coverage.

You can use an online broker like VisitorsCoverage to browse for the best travel insurance plans for your situation — just keep in mind that you need to purchase insurance before your trip. It won’t count if you buy it after you’ve already been bumped!

Or, if you booked your ticket using a credit card, travel insurance might already be included. 

For example, the Chase Sapphire Preferred® Card and The Platinum Card® from American Express both offer coverage for significant delays.* This includes costs like meals and accommodations.

Read your coverage details ahead of time to make sure you understand what you can receive. 

Remember: Cash compensation for overbooking won’t be covered by most travel insurance policies and credit cards, but the costs stemming from being bumped might be covered.

And if you’re not offered compensation by the airline, contact customer service immediately.

COMPARE: Best Travel Credit Cards

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How To Negotiate Better Compensation

To get the best bang for your travel buck, you need to negotiate for better compensation when you’ve been bumped from a flight.

Volunteering strategically

Volunteering can work well if you insist on better compensation. Government requirements are the minimum, and some airlines try to entice volunteers by offering more. 

Often, airlines offer vouchers you can use on future trips. In some cases, they will announce increases in voucher amounts. Decide at what point a voucher might be worth it, especially in terms of whether it beats the mandated minimums. 

You can also get high-value compensation in the form of lounge access and upgrades, especially if the airline is having difficulty finding volunteers. 

Those can be as valuable as cash compensation, especially when combined with a voucher for future flights. 

RELATED: How To Upgrade to First Class Without Paying Extra Fees

What to do if you’re involuntarily denied boarding 

If you don’t hear a good offer to give up your seat voluntarily, insist on cash or a check for compensation. 

It’s your right to receive actual money rather than accept a voucher. They will still rebook you on a later flight, and then you also receive a check.

Common Mistakes To Avoid

When an airline overbooks, you want to make sure you’re getting what you can. 

Here are some mistakes to watch out for:

• Before accepting a voucher, make sure you understand the restrictions. Some vouchers come with blackout dates that can make them less valuable. Ensure the voucher is flexible before moving forward.
• Don’t forget to ask for written proof of being involuntarily denied boarding. You must have written proof to enforce compensation and might need it when filing a claim with your travel insurance.
• Make sure to check the airline’s compensation policy before agreeing to terms. 
• Don’t give up your seat voluntarily without first understanding the federal requirements for compensation.

FAQs About Overbooked Flight Compensation

Should I volunteer to give up my seat?

Whether you should volunteer to give up your seat depends on your situation and the type of compensation the airline offers. 

If you can get greater value than the minimum requirements set by the government, volunteering might be worth it.

Can I request cash compensation instead of travel vouchers?

If you’re involuntarily bumped from the flight due to overbooking, the airline must issue cash compensation (it can be in the form of a check) if you want that instead of travel vouchers. 

What should I do if the airline refuses to compensate me?

File a complaint with the U.S. Department of Transportation. You can also contact the airline and find out what you need to do to elevate your complaint. 

Finally, you might also be able to take the airline to small claims court to enforce your right to compensation.

TL;DR: What To Do If Your Flight Is Overbooked

Overbooked flights are inconvenient, but they can also offer opportunities to claim compensation or negotiate perks. 

You have a right to cash compensation (or a check) if you’ve been involuntarily bumped from your flight due to overbooking. 

Understand your rights, stay calm, get it in writing, and don’t settle for less than you deserve!

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* Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.

Disclosure: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.