Do airlines give you cash for overbooking?

Cash, Not Just Vouchers: Your Rights When Airlines Overbook

Airlines regularly oversell flights, gambling that a certain percentage of passengers won’t show up. This practice, while frustrating for those left at the gate, is a calculated risk aimed at maximizing profits. But what happens when their gamble doesn’t pay off and you’re the one involuntarily denied boarding? While airlines often dangle the carrot of travel vouchers, it’s crucial to know that you likely have the right to demand cold, hard cash.

The key phrase here is “involuntarily denied boarding.” This means the airline refused you a seat despite having a confirmed reservation and arriving at the gate on time. Missing your check-in window or volunteering to give up your seat doesn’t qualify.

In these instances of involuntary denied boarding, airlines are obligated to compensate you. They might initially offer travel vouchers for future flights, often with added value as an incentive. While tempting, these vouchers come with restrictions like expiration dates, blackout periods, and limited route availability. More importantly, accepting a voucher might waive your right to a cash payment.

So, before you grab that seemingly generous voucher, remember this: U.S. Department of Transportation (DOT) regulations stipulate that you have the right to insist on a cash refund. This isn’t airline goodwill; it’s your legal entitlement. The amount you receive depends on how long the delay is in reaching your final destination.

For domestic flights within the U.S., the compensation structure is as follows:

• Arrival within one hour of your original scheduled arrival: No compensation is required.
• Arrival between one and two hours after your original scheduled arrival (or between one and four hours on international flights): The airline must pay you 200% of your one-way fare, up to a maximum of $700.
• Arrival more than two hours after your original scheduled arrival (or more than four hours on international flights): The airline must pay you 400% of your one-way fare, up to a maximum of $1400.

Note that these regulations apply to flights departing from a U.S. airport, even if the airline is foreign. For flights originating outside the U.S., different rules may apply.

The cash payment is typically issued as a check, although some airlines might offer other methods. Don’t be afraid to assert your rights and ask for what you’re entitled to. While vouchers can be convenient, cash offers greater flexibility and ensures you’re not locked into future travel with the same airline. Knowing your rights can make a frustrating experience a little less painful and potentially a bit more profitable.